Kanadevia (7004) Q3 2024 earnings summary

Executive summary

• Net sales for 1-3Q FY2024 rose 11% year-over-year to JPY 413.4bn, with operating income up to JPY 9.7bn, driven by strong Environment Business performance.

• Profit attributable to shareholders for 1-3Q FY2024 was JPY 5.3bn, down 9.5% year-over-year.

• Segment performance was mixed: Environment showed strong growth, while Machinery & Infrastructure and Carbon Neutral segments saw declines in operating income.

Financial highlights

• Order intake for 1-3Q FY2024 was JPY 446.8bn, down JPY 93.5bn year-over-year; net sales up to JPY 413.4bn.

• Gross profit increased to JPY 72.0bn, but ordinary income fell 35.5% to JPY 5.9bn.

• Cash flows from operating activities improved to JPY 8.9bn, up by JPY 21.9bn year-over-year.

• Cash and deposits at end of Dec 2024 were JPY 49.6bn, down from JPY 71.6bn at the start of the period.

• Extraordinary profit of JPY 2.9bn in Q3 FY2024, mainly from one-time items.

Outlook and guidance

• Full-year FY2024 net sales forecast maintained at JPY 590.0bn; operating income forecast at JPY 26.0bn.

• Environment Business full-year order intake forecast at JPY 540.0bn; operating income expected to reach JPY 25.6bn.

• Segment forecasts project continued strength in Environment, with stable or revised-down performance in other segments.

• Dividends per share maintained at JPY 23.