Kobe Bussan (3038) Q2 2024 earnings summary

Executive summary

• Net sales rose 11.8% year-over-year to ¥248,123 million, driven by robust new store openings and strong shipments to existing stores.

• Operating profit increased 25.4% year-over-year to ¥17,720 million, with profit attributable to owners of parent up 35.5% to ¥12,345 million.

• All business segments, including Gyomu Super, Restaurant & Delicatessen, and Eco Renewable Energy, reported improved performance.

• The company focused on strengthening integrated food production and distribution, expanding production capacity, and proactive product development.

• Economic recovery in Japan continued, but uncertainty persisted due to geopolitical risks, currency fluctuations, and rising energy costs.

Financial highlights

• Gross profit grew 19.3% year-over-year to ¥29,239 million, with gross margin improving to 11.8%.

• Ordinary profit surged 36.7% year-over-year to ¥18,036 million, aided by the absence of prior year derivative losses.

• Net assets reached ¥123,069 million, with an equity ratio of 54.0%.

• Basic earnings per share grew to ¥55.93 from ¥41.54 year-over-year.

• Total assets as of April 30, 2024, were ¥222,177 million, up ¥10,285 million from October 31, 2023.

Outlook and guidance

• FY2024 full-year net sales forecast is ¥498,000 million, with operating profit projected at ¥31,000 million.

• Progress toward full-year targets: 49.8% for net sales, 57.2% for operating profit, and 57.4% for net income.

• Medium-term plan targets net sales of ¥543,000 million and operating profit of ¥37,000 million by FY2026.

• No revisions to earnings or dividend forecasts.

• Full-year profit attributable to owners of parent forecast at ¥21,500 million and EPS at ¥97.44.