Yodoko (5451) Q2 2024 earnings summary

Executive summary

• H1 FY3/24 net sales fell 14.5% YoY to ¥101.28B and operating profit fell 33.6% to ¥5.47B, mainly on lower steel-sheet sales volumes.

• Profit attributable to owners of parent declined 11.5% to ¥5.18B; results exceeded interim forecasts for operating profit, ordinary profit and net profit.

Financial highlights

• Gross profit was ¥15.81B versus ¥18.86B YoY; SG&A was ¥10.34B versus ¥10.62B.

• Ordinary profit declined 30.0% to ¥7.67B; profit before income taxes was ¥8.15B versus ¥10.24B.

• EPS was ¥179.56 versus ¥203.08 YoY; comprehensive income increased to ¥12.51B from ¥9.99B.

Outlook and guidance

• FY3/24 guidance: net sales ¥205.00B, operating profit ¥10.00B, ordinary profit ¥13.10B and parent-attributable profit ¥8.20B; YoY declines of 7.0%, 21.0%, 25.9% and 22.6%, respectively.

• H2 forecasts are net sales ¥103.71B, operating profit ¥4.52B, ordinary profit ¥5.42B and parent-attributable profit ¥3.01B.

• Domestic and overseas sales and earnings are forecast lower, reflecting sluggish Japanese building demand and steel supply-demand pressure amid slow growth in China and elsewhere.