Canon Marketing Japan (8060) Q3 2024 earnings summary

Executive summary

• Net sales increased 9% year-over-year in 3Q FY2024, but operating income declined 3% and net income attributable to owners of the parent fell 5%.

• For the nine months ended September 30, 2024, net sales rose 6.4% year-over-year to ¥473,181 million, with net income attributable to owners of the parent up 4.4% to ¥26,980 million.

• IT solutions business drove growth, with sales up 18% year-over-year.

• Net income forecast for FY2024 was revised upward due to extraordinary income from share transfer.

• Annual dividend forecast raised to 130 yen per share, payout ratio 41%.

Financial highlights

• 3Q FY2024 net sales: ¥154.3B (+9% YoY); operating income: ¥10.3B (-3% YoY); net income: ¥6.8B (-5% YoY).

• 1Q-3Q FY2024 net sales: ¥473.2B (+6% YoY); operating income: ¥36.3B (-4% YoY); net income: ¥27.0B (+4% YoY, record high for period).

• Gross profit increased to ¥153,094 million from ¥149,957 million year-over-year.

• SG&A expenses increased, notably in IT and goodwill amortization.

• Total assets decreased to ¥494,529 million from ¥557,366 million at the previous year-end.

Outlook and guidance

• FY2024 net sales forecast: ¥650.0B (+7% YoY); operating income: ¥54.0B (+3% YoY); net income: ¥39.0B (+7% YoY).

• Segment forecasts: Enterprise and Professional segments expected to see strongest sales and income growth.

• Consumers segment net sales to decrease, but operating income to rise on higher camera sales.

• Annual dividend forecast raised to ¥130.00 per share.