Unicharm (8113) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2024, reached 722.1 billion JPY (YOY +5.0%), and core operating income was 103.6 billion JPY (YOY +11.7%), driven by value-shifting, cost reductions, and strong overseas and Japan performance.

• Sales and core operating income hit all-time highs for the seventh consecutive year, with stable earnings despite increased investments and higher logistics and personnel costs.

• Profit before tax decreased 0.3% YOY to 100.8 billion JPY, and profit attributable to owners of parent declined 2.4% to 59.6 billion JPY.

• Overseas markets showed recovery in key regions, while Japan maintained strong sales growth due to effective cost pass-through and value-added product strategies.

Financial highlights

• Net sales: 722.1 billion JPY (YOY +5.0%), core operating income: 103.6 billion JPY (YOY +11.7%), EBITDA: 135.6 billion JPY (YOY +2.1%).

• Gross profit increased to 284.6 billion JPY, and gross profit margin improved due to value-shifting and cost reductions.

• Core operating income margin: 14.3%–14.4% (YOY +0.8pt).

• Base/basic EPS: 101.23 JPY (YOY -1.7%).

• Total assets as of September 30, 2024: 1,164.5 billion JPY, up 2.7% from year-end 2023.

Outlook and guidance

• Full-year 2024 forecast maintained: net sales 1,006 billion JPY (YOY +6.8%), core operating income 144 billion JPY (YOY +12.5%), profit attributable to owners of parent 90 billion JPY (YOY +4.6%), and basic EPS 153.49 JPY.

• Annual dividend forecast raised to 44 JPY per share, marking 23 consecutive years of increases.

• Aiming to achieve annual targets by boosting sales and profit in Q4, with continued strategic investments and focus on value-shifting.

• Expecting strong performance in Japan, India, Middle East, and North America, while recovery in Southeast Asia and China remains delayed.