HORIBA (6856) Q2 2024 earnings summary

Executive summary

• First half 2024 net sales rose 8.9% year-over-year to ¥142.7bn, driven by yen depreciation and strong Automotive and Semiconductor segment sales, but below forecasts by ¥7.2bn.

• Operating profit increased 4.4% to ¥18.6bn, slightly up from last year but underperformed forecasts.

• Net income attributable to shareholders dropped 30.8% year-over-year to ¥13.1bn, mainly due to a prior-year extraordinary gain from the sale of subsidiary shares.

• Semiconductor segment led growth, while Automotive segment saw notable sales increases but continued to face profitability challenges.

• Medical and Scientific segments posted operating losses due to lower domestic sales and higher R&D expenses.

Financial highlights

• Operating profit margin for H1 2024 was 13.0%, down 0.6 points year-over-year.

• Ordinary profit rose to ¥19.2bn, up 6.3% year-over-year.

• Free cash flow was positive at ¥5.5bn; operating cash flow ¥9.9bn, investing cash flow ¥-4.3bn.

• Gross income increased to ¥62.1bn from ¥56.1bn year-over-year.

• Cash and cash equivalents at period end increased to ¥134.2bn from ¥127.0bn a year earlier.

Outlook and guidance

• Full-year 2024 sales forecast maintained at ¥321.0bn, up 10.5% year-over-year.

• Operating profit forecast at ¥52.0bn, up 9.9% year-over-year.

• Net income forecast at ¥37.0bn, down 8.2% from 2023.

• Dividend forecast for FY2024 is ¥265 per share.

• Exchange rate assumptions: ¥145/USD and ¥160/EUR.