ZERO (9028) Q4 2024 earnings summary

Executive summary

• Revenue for the first half of FY2024 was ¥64,399 million, a slight increase of 0.2% year-over-year, while full-year sales revenue rose 5.9% to 140,751 million yen, driven by recovery in the automotive market and increased pre-delivery inspections.

• Operating profit rose 8.7% year-over-year to ¥2,328 million for the half-year, and full-year operating income increased 22.6% to 6,222 million yen.

• Net income attributable to owners was ¥1,469 million for the half-year, up 2.3%, and full-year net income attributable to equity shareholders rose 20.7% to 4,150 million yen.

• The company implemented a 20% price increase for vehicle transport services from January 2024 to address rising costs and regulatory changes.

• The acquisition of So-ing Co., Ltd. in November 2023 contributed to segment profit growth and operational efficiency.

Financial highlights

• Revenue: ¥64,399 million for H1 FY2024 (up ¥152 million, 100.2% year-over-year); full-year sales revenue: 140,751 million yen (up 5.9%).

• Operating profit: ¥2,328 million for H1 (up ¥185 million, 108.7%); full-year operating income: 6,222 million yen (up 22.6%).

• Net income: ¥1,469 million for H1 (up ¥33 million, 102.3%); full-year net income: 4,150 million yen (up 20.7%).

• Basic EPS: ¥87.04 for H1 (up ¥1.74, 102.0%); full-year EPS: 245.61 yen (up from 203.96 yen).

• Interim dividend maintained at ¥15.0 per share; dividend payout ratio: 25.0%.

Outlook and guidance

• Full-year revenue forecast is ¥121,000 million, with operating profit projected at ¥5,200 million.

• For the year ending June 2025, sales revenue is forecast at 135,000 million yen (down 4.1%), with operating income and profit before tax both expected to rise over 30% to 8,100 million yen, and net income projected at 5,500 million yen (up 32.5%).

• Guidance unchanged, factoring in industry trends and regulatory impacts; efficiency improvements and rate revisions expected to benefit operating income.

• Price increases and operational adjustments are expected to offset cost pressures.