Artience (4634) Q4 2024 earnings summary

Executive summary

• FY2024 saw significant growth in sales and profit, with net sales up 9% year-over-year to ¥351.1 billion and operating profit up 52.7% to ¥20.4 billion, driven by overseas expansion, cost control, and efficiency improvements.

• Profit attributable to owners of parent surged 90.4% year-over-year to ¥18.5 billion.

• Strategic focus included growth in packaging, digital printing, functional coatings, and transformation of business groups, with advanced electronics and batteries prioritized.

• Corporate value enhancement was pursued through improved ROE, reduction of shareholdings, increased shareholder returns, and management foundation enhancement.

Financial highlights

• Net sales reached ¥351.1 billion (+9% YoY), operating profit ¥20.4 billion (+52.7% YoY), and profit attributable to owners of parent ¥18.5 billion (+90.4% YoY).

• Operating margin improved to 5.8% from 4.2% YoY; ROE increased to 7.3% from 4.2%.

• Overseas sales ratio climbed to 55.4%.

• Gross profit margin increased to 21.3% from 19.8% YoY.

• EPS rose to ¥352.53 (from ¥183.69 YoY); total assets ¥472.8 billion, net assets ¥273.8 billion.

Outlook and guidance

• FY2025 guidance: net sales ¥370.0 billion (+5.4%), operating profit ¥22.0 billion (+7.8%), with continued growth expected in India and Southeast Asia.

• Profit attributable to owners of parent forecast at ¥17.5 billion (-5.6% YoY); ordinary profit ¥21.0 billion (flat YoY).

• ROE target for 2026 revised upward to 8.0% or higher; operating margin target set at 6.3%.

• LiB-related business expected to recover in the second half of FY2025, with profitability targeted for 2026.

• Moderate economic recovery expected, but risks include high interest rates, China’s real estate market, and geopolitical tensions.