Trusco Nakayama (9830) Q1 2024 earnings summary

Executive summary

• Q1 revenue rose 9.0% YoY to ¥71,921 million; operating income increased 27.6% to ¥4,997 million and net income rose 31.3% to ¥3,512 million.

• Growth initiatives focused on faster delivery, inventory optimization, direct-to-user shipping, digital services and repair/reuse offerings.

Financial highlights

• Revenue was ¥71,921 million, up 9.0% YoY; gross profit was ¥14,811 million versus ¥13,234 million.

• Operating income was ¥4,997 million, up 27.6% YoY; ordinary income was ¥5,065 million, up 27.5%.

• Net income attributable to owners was ¥3,512 million, up 31.3% YoY; prior-year net income included a ¥78 million soil-contamination remediation expense.

• SG&A increased 5.3% YoY to ¥9,814 million, reflecting incentive and part-time labor costs and higher shipping and packing expenses as shipments grew.

Outlook and guidance

• FY2024 forecast remains unchanged: revenue ¥284,710 million (+6.2%), operating income ¥18,610 million (+5.6%), ordinary income ¥18,850 million (+1.0%) and net income ¥14,740 million (+20.1%).

• FY2024 EPS is forecast at ¥223.53; Q2 cumulative revenue is forecast at ¥138,768 million and operating income at ¥9,017 million.

• FY2024 dividend forecast is ¥49 per share, comprising ¥24 interim and ¥25 year-end, versus ¥46.50 for FY2023.