Uchida Yoko (8057) Q4 2024 earnings summary

Executive summary

• Achieved record-high sales, gross profit, and net income in FY2023, with revenue rising 12.7% year-over-year to ¥277.9 billion and net income up 9.9% to ¥6.99 billion, driven by strong DX/ICT investments and office renewal demand.

• Private sector demand expanded, especially in ICT and office renovation projects, while public sector projects progressed as planned.

• The final year of the 16th mid-term plan exceeded initial targets, reflecting successful structural reforms and business portfolio optimization.

• Continued investment in future growth, including increased SG&A expenses and capital investments.

Financial highlights

• FY2023 sales rose 12.7% year-over-year to ¥277,940 million; operating income up 10.8% to ¥9,345 million; gross profit increased to ¥47,734 million.

• Net income up 9.9% to ¥6,996 million; EPS rose to ¥710.86 from ¥647.35 year-over-year.

• All-time high sales and net income, with sales 169.1% higher than five years ago.

• Comprehensive income surged 86.6% year-over-year to ¥14.15 billion.

• Operating margin remained stable at 3.4%, and net margin at 2.5%.

Outlook and guidance

• FY2024/FY2025 forecast: sales to increase 7.9% to ¥300,000 million, operating income up 7.0% to ¥10,000 million, net income up 2.9% to ¥7,200 million, EPS ¥731.45.

• Growth expected in all segments, with continued focus on management reforms and resource sharing.

• Public sector demand to focus on preparation for future GIGA School and system standardization projects.

• 17th Midterm Plan targets FY2026 sales of ¥340 billion and operating income of ¥11.5 billion.