MatsukiyoCocokara & Co (3088) Q1 2024 earnings summary

Executive summary

• Net sales rose 4.6% year-over-year to ¥259.7 billion, driven by strong medical, pharmaceutical, and cosmetic sales despite a decline in COVID-19-related products.

• Gross profit increased 6.0% year-over-year, but higher SG&A expenses led to a 1.0% decrease in operating profit.

• EBITDA grew 1.1% year-over-year, while profit attributable to owners of parent fell 2.7%.

• The company continued to execute key strategies, including expanding private brands and integrating physical and digital customer touchpoints.

Financial highlights

• Gross profit margin improved to 34.4% from 33.9% year-over-year.

• SG&A expenses increased 7.8% year-over-year, mainly due to higher personnel and rent costs.

• Operating profit margin declined to 6.7% from 7.0% year-over-year.

• Net income margin decreased to 4.5% from 4.8% year-over-year.

• Basic earnings per share for the quarter was ¥28.00, adjusted for a 3-for-1 stock split.

Outlook and guidance

• No revisions to the FY2024 consolidated earnings forecast; full-year net sales expected at ¥1,050 billion, up 2.7%.

• Full-year operating profit forecast at ¥77.5 billion, up 2.4% year-over-year.

• Profit attributable to owners of parent projected at ¥52.5 billion, up 0.3% year-over-year.

• Basic earnings per share for the full year is forecast at ¥125.92.