Kanadevia (7004) Q1 2024 earnings summary

Executive summary

• Net sales rose 18.6% year-over-year to ¥121.6 billion for 1Q FY2024, with operating loss improving to -¥0.8 billion from -¥3.3 billion.

• Ordinary loss narrowed to -¥2.06 billion from -¥2.14 billion, while net loss attributable to shareholders widened to -¥2.81 billion.

• Full-year order forecast was revised upward, driven by strong overseas business and Environment segment orders.

Financial highlights

• 1Q FY2024 net sales reached ¥121.5–¥121.6 billion, up ¥19.1 billion year-over-year; operating income improved to -¥0.8 billion.

• Gross profit increased to ¥19.3 billion from ¥15.0 billion; gross margin improved.

• Cash flows from operating activities increased to ¥46.8 billion, up ¥25.0 billion year-over-year.

• Shareholders' equity ratio was 31.6% as of June 30, 2024.

• Net income per share was -¥16.70, compared to -¥11.19 a year earlier.

Outlook and guidance

• Full-year net sales forecast maintained at ¥570.0 billion; operating income forecast at ¥26.0 billion.

• Full-year order intake forecast revised upward to ¥660.0 billion, reflecting strong overseas business.

• Profit attributable to shareholders expected at ¥16.0 billion; EPS forecast at ¥94.94.

• Dividends per share projected at ¥23, unchanged from previous year.