Alps Alpine (6770) Q2 2024 earnings summary

Executive summary

• Net sales rose 3.2% year-over-year to ¥490.3 billion for 1H FY2024, driven by yen depreciation and strong mobile, consumer, and automotive demand, while system product sales declined due to model ends and weak new vehicle sales.

• Operating income increased to ¥11.2 billion (+0.5B YoY), while ordinary income fell 51.6% to ¥8.1 billion due to lower non-operating income.

• Net income attributable to owners of parent dropped 84.9% YoY to ¥1.0 billion, impacted by foreign exchange and extraordinary losses.

• Management structure reforms and cost structure improvements are progressing as planned, with fixed cost reductions on track.

• Comprehensive income turned negative at ¥(7.9) billion, mainly due to foreign currency translation losses.

Financial highlights

• Gross profit increased to ¥84.7 billion, with a slight improvement in gross margin.

• Basic earnings per share fell to ¥4.93 from ¥32.65 YoY.

• Total assets decreased by ¥50.2 billion to ¥703.7 billion as of September 30, 2024.

• Cash and deposits declined to ¥84.4 billion due to debt repayment.

• R&D expenses for 1H FY2024 totaled ¥15.3B; capital expenditures reached ¥24.5B.

Outlook and guidance

• Full-year net sales forecast raised to ¥940.0B, operating income to ¥23.0B, and profit attributable to owners of parent to ¥30.0B.

• Full-year net income forecast revised to ¥19.0B, reflecting stronger mobile sales and challenges in automotive systems.

• Interim and year-end dividends each set at ¥30.00 per share; total dividend forecast maintained at ¥60 per share.

• Estimated H2 exchange rates: USD/JPY 140, EUR/JPY 150, CNY/JPY 20.

• Forecasts are subject to risks including exchange rate volatility and market demand changes.