Trusco Nakayama (9830) Q2 2024 earnings summary

Executive summary

• Interim net sales rose 9.2% year-over-year to ¥143,461 million, with gross profit up 7.1% and interim profit attributable to owners up 11.2%.

• Full-year net sales are forecast at ¥290,000 million (+8.1% YoY), with profit attributable to owners expected to rise 22.5% due to extraordinary income in the second half.

• Growth was driven by inventory, logistics, and digital initiatives, with strong performance across all sales routes, especially e-business and overseas.

Financial highlights

• Interim gross profit margin was 21.1%, down 0.4pt YoY; SGA expenses increased 6.9% YoY, mainly from higher salaries and freight.

• Operating income for the interim period was ¥9,852 million (+7.6% YoY); ordinary income was ¥9,953 million (+7.4% YoY).

• Interim EPS was ¥102.30 (+¥10.31 YoY); interim dividend per share was ¥26.00 (+¥3 YoY).

• Private brand sales grew 3.8% YoY; capital expenditures for the interim period totaled ¥9,868 million.

Outlook and guidance

• Full-year net sales revised upward to ¥290,000 million (+8.1% YoY), gross profit to ¥60,269 million (+4.8% YoY), and profit attributable to owners to ¥15,032 million (+22.5% YoY).

• Extraordinary income of approximately ¥2,700 million is planned for the second half.

• Dividend per share for the year is projected at ¥50.00 (+¥3.50 YoY).