Alps Alpine (6770) Q3 2024 earnings summary

Executive summary

• Sales and income increased year-over-year, driven by yen depreciation and strong mobile and consumer demand, despite sluggish Tier 1 automotive module and system sales; Tier 2 automotive business expanded.

• Cost structure reforms and management restructuring are progressing as planned, with a focus on core business and withdrawal from unprofitable areas.

• The company operates globally with 186 bases in 23 countries, offering 40,000 products across automotive, mobile, and consumer markets.

Financial highlights

• Net sales for FY2024 3Q cumulative: ¥740.6B, up 0.7% year-over-year; operating income: ¥25.2B, up 22.9%; ordinary income: ¥24.4B, up 2.2%.

• Profit attributable to owners: ¥9.9B, a turnaround from a ¥20.3B loss last year.

• Gross profit for the nine months was ¥130.5B, with a gross margin of 17.6%.

• Basic earnings per share improved to ¥48.20 from a loss of ¥99.13 in the prior year.

• Cash and deposits decreased by ¥20.1B due to debt repayment; equity ratio improved to 55.0%.

Outlook and guidance

• Full-year net sales forecast raised to ¥980.0B, operating income to ¥28.0B, and profit attributable to owners to ¥32.0B, reflecting continued mobile market strength and FX impacts.

• Basic earnings per share for the year projected at ¥155.62.

• USD/JPY assumption revised from 140 to 151.93 for 4Q; estimated Q4 exchange rates: USD/JPY 150.0, EUR/JPY 160.0, CNY/JPY 21.0.

• Strategic investments and cost reforms expected to drive further growth and margin improvement.