KOSÉ (4922) Q2 2024 earnings summary

Executive summary

• Net sales for 1H/2Q 2024 rose 10.3% year-over-year to ¥159.1 billion, driven by strong performance in Japan and Tarte, offsetting declines in China.

• Operating profit increased 31.9% year-over-year to ¥13.7 billion, with an operating margin of 8.6%.

• Net income attributable to owners of parent grew 33.5% year-over-year, aided by foreign exchange gains.

• Overseas sales accounted for 36.4% of total sales; Japan and North America saw significant gains while China declined.

• Comprehensive income increased 44.7% to ¥17,617 million.

Financial highlights

• Gross profit rose 9.1% year-over-year to ¥112.6 billion; SG&A expenses increased 6.6% but the ratio to sales decreased.

• Net income per share was ¥203.47, up ¥51.03 from the prior year.

• Total assets reached ¥380.1 billion with an equity ratio above 70%.

• Cash and cash equivalents decreased by ¥6.3 billion, but liquidity remains sound.

• Comprehensive income increased 44.7% to ¥17,617 million.

Outlook and guidance

• 2024 full-year net sales forecast maintained at ¥312.0 billion (+3.9% YoY); operating profit projected at ¥20.0 billion (+25.1% YoY).

• No revision to overall 2024 outlook, but regional and segment breakdowns adjusted to reflect 1H results and forex impacts.

• Second half sales growth expected to moderate due to prior year recovery; no V-shaped recovery anticipated in China.

• Full-year dividend forecast unchanged at ¥140 per share; interim dividend of ¥70 per share paid.

• Net income forecast for 2024 is ¥12.6 billion, EPS ¥220.83.