ZERO (9028) Q4 2023 earnings summary

Executive summary

• FY June 2023 revenue rose to ¥132,861 million from ¥107,045 million; operating profit increased to ¥5,074 million from ¥3,912 million.

• Revenue growth was led by overseas-related business and domestic automotive-related business; FY June 2024 guidance calls for lower revenue but higher operating profit and net income.

Financial highlights

• FY June 2023 revenue was ¥132,861 million, up ¥25,816 million YoY; operating profit was ¥5,074 million, up ¥1,162 million.

• Pretax profit reached ¥5,080 million, up ¥1,133 million; net income attributable to owners of the parent was ¥3,437 million, up ¥902 million.

Outlook and guidance

• FY June 2024 revenue forecast is ¥121,000 million, 91.1% of FY23; operating profit ¥5,200 million, 102.5%; pretax profit ¥5,200 million, 102.4%.

• FY24 net income forecast is ¥3,500 million, 101.8% of FY23; basic EPS ¥207.64 and annual dividend ¥51.90.

• Revenue outlook reflects an expected slowdown in Malaysian used-car demand; vehicle transport forecasts factor in used-car industry disruption despite automakers increasing production to work through order backlogs.