Angel Yeast (600298) Q2 2024 earnings summary

Executive summary

• Achieved revenue of ¥7.17 billion for H1 2024, up 6.86% year-over-year; net profit attributable to shareholders reached ¥691 million, up 3.21% year-over-year.

• Basic EPS was ¥0.80, up 2.56% year-over-year; adjusted EPS (excluding non-recurring items) was ¥0.69, down 2.82% year-over-year.

• International business revenue grew 17.89% year-over-year, reaching ¥2.82 billion.

• Gross margin and profitability were impacted by higher raw material costs and increased financial expenses.

Financial highlights

• Operating cash flow was -¥89 million, down 128.95% year-over-year, mainly due to increased cash outflows for raw material purchases.

• Total assets at period end were ¥20.48 billion, up 6.08% from year-end 2023; net assets attributable to shareholders were ¥10.18 billion, up 0.84%.

• Gross margin was pressured by a 7.23% increase in cost of sales; financial expenses rose 217.12% due to higher interest costs.

• R&D expenses increased 3.97% year-over-year, supporting new product development.

• Non-recurring profit items contributed ¥95.15 million, mainly from government subsidies and investment income.

Outlook and guidance

• Management remains focused on expanding international markets, product innovation, and cost control to drive future growth.

• Ongoing investments in capacity expansion and digital transformation are expected to support long-term competitiveness.