Trusco Nakayama (9830) Q3 2024 earnings summary

Executive summary

• 9M FY2024 revenue rose 10.1% YoY to ¥216,383m; operating income and ordinary income each increased 8.4%, and net income attributable to owners rose 32.3% to ¥11,602m.

• Net income growth included a ¥2,667m gain on sale of the former Osaka head office; gross margin narrowed as the benefit from selling pre-price-revision inventory weakened.

• Sales grew across all major routes, led by overseas (+19.4%) and e-business (+15.0%).

Financial highlights

• 9M operating income was ¥14,268m and ordinary income ¥14,330m; gross margin was 20.8%, down from 21.2% a year earlier.

• SG&A rose 7.8% YoY to ¥30,657m, with higher freight, packaging, salaries and bonuses accompanying increased shipment volumes.

• Comprehensive income was ¥11,886m, versus ¥9,356m in the prior-year period.

Outlook and guidance

• FY2024 forecast: revenue ¥290,000m (+8.1%), operating income ¥19,112m (+3.2%), ordinary income ¥19,364m (+3.7%) and net income ¥15,032m (+22.5%).

• Forecast EPS is ¥227.96; planned annual dividend is ¥50.00 per share, including ¥26.00 paid and ¥24.00 forecast for year-end.

• Forecast route sales: factory ¥195,078m (+7.1%), e-business ¥66,026m (+11.7%) and overseas ¥3,065m (+18.7%).

• Results may differ materially from forecasts due to varied factors; projections rely on available information and reasonable assumptions.