Yokorei (2874) Q4 2024 earnings summary

Executive summary

• FY2024 revenue decreased 2.6% to ¥122.3 billion, but operating profit rose 29.5% to ¥4.65 billion due to improved gross margin and cost controls.

• Net income attributable to shareholders was ¥3.93 billion, reversing a prior loss, aided by extraordinary gains and the absence of large one-time losses.

• Prior years' financials were restated due to revenue recognition changes and issues with a South American trading partner, impacting reported results for FY2021–FY2023.

• Management implemented executive pay cuts and suspended performance-linked bonuses in response to accounting issues.

• Comprehensive income reached ¥7,894 million, compared to a loss of ¥9,962 million the previous year.

Financial highlights

• Gross profit was ¥13,664 million, with a gross margin of 11.2%.

• EBITDA increased 18.1% to ¥12.0 billion.

• Earnings per share improved to ¥66.79 from a loss per share of ¥182.52 year-over-year.

• Capital expenditures surged 74.1% to ¥21.6 billion, mainly for new logistics centers.

• Total assets increased to ¥203,026 million, and net assets rose to ¥79,871 million.

Outlook and guidance

• FY2025 revenue is forecast at ¥127.0 billion (+3.9% YoY), with operating profit expected to decline 8.5% to ¥4.25 billion.

• Net income is projected to decrease 28.8% to ¥2.8 billion.

• Dividend forecast is ¥24 per share, with a progressive payout policy and a forecast payout ratio of 50.5%.

• The business environment remains challenging due to labor shortages, energy costs, FX volatility, and global competition for food resources.

• A new Risk Management Department was established in January 2025 to strengthen company-wide risk controls.