World Holdings (2429) Q3 2024 earnings summary

Executive summary

• Net sales increased 13.6% year-over-year to ¥171.5 billion, but operating profit declined 43.5% YoY due to real estate sales timing and semiconductor sector weakness, though profits exceeded internal plans.

• All business segments except Real Estate posted YoY sales growth; Services Human Resources and Agricultural Park businesses saw notable profit increases.

• The business environment remained challenging due to slow economic recovery, high real estate prices, and lack of growth in the semiconductor industry.

Financial highlights

• Net sales: ¥171.5 billion (+13.6% YoY), operating profit: ¥4.39 billion (-43.5% YoY), ordinary profit: ¥4.29 billion (-44.2% YoY), profit attributable to owners: ¥1.96 billion (-58.4% YoY).

• EBITDA: ¥5.96 billion, down 33.9% YoY.

• Gross profit was ¥26.24 billion, down from ¥26.92 billion YoY.

• Comprehensive income fell 55.5% to ¥2.18 billion.

• Net income per share was ¥110.52, down from ¥268.35 YoY.

Outlook and guidance

• Full-year forecast maintained: net sales ¥252.1 billion (+17.9% YoY), operating profit ¥9.0 billion (-13.1% YoY), ordinary profit ¥8.62 billion (-15.9% YoY), profit attributable to owners ¥4.74 billion (-23.6% YoY), EPS ¥270.05.

• Human Resources and Education expected to drive growth in Q4 and 2025 as semiconductor sector recovers.

• Real Estate profits forecast to decline due to prior year sales timing; cautious approach continues.

• Dividend forecast for FY2024 is ¥80.9 per share, reflecting a 30% payout ratio.