Hosokawa Micron (6277) Q4 2024 earnings summary

Executive summary

• Net sales reached a record-high ¥85.4 billion, up 7.4% year-over-year, and operating profit rose 4.0% to ¥8.2 billion.

• Ordinary profit increased 10.7% to ¥9.2 billion, but net profit declined 6.5% to ¥5.6 billion due to extraordinary losses.

• Gross profit margin improved by 0.9pp to 35.1% as price hikes offset raw material cost increases.

Financial highlights

• Bookings decreased 1.5% year-over-year to ¥77.7 billion, while net sales rose 7.4% to ¥85.4 billion.

• Gross profit increased to ¥29.9 billion; SG&A expenses rose 12.7% to ¥21.7 billion.

• Comprehensive income dropped to ¥5.2 billion from ¥9.9 billion year-over-year.

• Earnings per share (basic) was ¥371.99, down from ¥382.75 the previous year.

• Cash and cash equivalents at year-end were ¥26.9 billion.

Outlook and guidance

• FY2025 forecast: net sales ¥83.0 billion (down 2.8%), operating profit ¥6.5 billion (down 21.5%), net profit ¥5.1 billion (down 8.6%).

• Dividend forecast for FY2025 is ¥120 per share, maintaining a high payout ratio of 34.8%.

• Cautious investment climate expected, especially in rechargeable battery markets; temporary cost increases anticipated.

• Earnings per share forecasted at ¥344.96 for the next fiscal year.