Alps Alpine (6770) Q4 2024 earnings summary

Executive summary

• Achieved year-on-year increases in sales and profit for FY2024, driven by strong component sales in mobile, consumer, and auto sectors.

• Profit growth was supported by yen depreciation, cost structure reforms, and extraordinary gains from asset sales.

• Net income rose significantly year-over-year, reversing a prior-year loss.

• The company discontinued its 2nd Medium-Term Management Plan, shifting focus to structural reforms and launching a new plan targeting ROIC and digital cabins.

Financial highlights

• FY2024 net sales: ¥990.4B (+2.7% YoY); operating income: ¥34.1B (+73% YoY); net income: ¥37.8B (vs. -¥29.8B prior year).

• Operating margin improved to 3.4% from 2.0% YoY; ROE reached 9.4% (vs. -7.6% prior year).

• Cash and deposits increased to ¥147.9B; equity ratio improved to 55.9%.

• Basic EPS was ¥184.00, compared to a loss of ¥145.04 the previous year.

• Extraordinary income included ¥27.0B from the sale of ALPS LOGISTICS shares and ¥6.4B from the power inductor business sale.

Outlook and guidance

• FY2025 sales and profits expected to decline due to tariff impacts and yen appreciation; net sales forecast: ¥910.0B (-8.1% YoY), operating income: ¥17.0B (-50% YoY), net income: ¥4.5B.

• Segment forecasts: Component Segment net sales ¥306.5B, operating profit ¥20.0B; Sensor and Communication Segment net sales ¥78.5B, operating loss ¥5.0B; Mobility Segment net sales ¥502.0B, operating profit ¥1.0B.

• Tariff increases in the US and China factored into forecasts; USD/JPY assumed at 140.

• Dividend policy targets DOE of 3%, with planned dividends of ¥60 per share and a ¥20B share buyback by March 2026.

• Mid-Term Management Plan 2027 targets unchanged: PBR ≥1x by FY2026, ROE 10% by FY2027.