Yodoko (5451) Q4 2024 earnings summary

Executive summary

• FY3/24 sales and operating profit declined as lower steel-sheet volumes outweighed improved selling prices; net profit also fell sharply amid a product-warranty provision.

• Taiwan subsidiary earnings improved, while sluggish Chinese real estate and weaker Japan demand weighed on results.

Financial highlights

• Net sales were ¥203.95bn, down 7.4% YoY; operating profit was ¥12.01bn, down 5.1%, and ordinary profit was ¥15.20bn, down 14.0%.

• Profit attributable to owners of parent was ¥4.45bn, down 57.9% YoY; EPS was ¥154.29 versus ¥367.13.

• FY3/24 results versus February forecasts: sales ¥203.95bn vs. ¥205.00bn; operating profit ¥12.01bn vs. ¥11.40bn; ordinary profit ¥15.20bn vs. ¥14.50bn.

Outlook and guidance

• FY3/25 forecast: sales ¥212.00bn, up 3.9% YoY; operating profit ¥11.10bn, down 7.6%; ordinary profit ¥18.40bn, up 21.0%; net profit ¥11.90bn.

• Japan earnings are expected to decline amid sluggish construction demand and higher material, logistics and labor costs; overseas earnings are expected to fall despite higher sales volumes, due to rising costs.

• Steel demand is expected to remain unstable amid China’s prolonged real estate downturn and geopolitical risks, including Ukraine and the Middle East.