MatsukiyoCocokara & Co (3088) Q2 2024 earnings summary

Executive summary

• Net sales rose 3.5% year-over-year to ¥525.7 billion, driven by recovery in foot traffic, strong duty-free and cosmetics sales, and continued store expansion.

• Operating profit was flat at ¥37.7 billion, up 0.3% YoY, with an operating margin of 7.2%.

• Profit attributable to owners of parent declined 3.4% YoY to ¥25.0 billion.

• Growth supported by cost controls, high-value-added products, and investments in private brands and digital integration.

• Store count in Japan reached 3,488, with 73 stores overseas, including a new entry into Guam.

Financial highlights

• Gross profit increased 4.9% YoY to ¥182.4 billion, with gross margin improving to 34.7%.

• EBITDA rose 1.9% YoY to ¥48.8 billion.

• Free cash flow for the period was ¥35.4 billion, up ¥18.0 billion YoY.

• Comprehensive income fell 10.1% YoY to ¥25.1 billion.

• Cash and cash equivalents at period-end were ¥113.4 billion, down ¥4.3 billion from March 31, 2024.

Outlook and guidance

• No revisions to full-year FY2024 forecasts: net sales ¥1,050 billion (+2.7% YoY), operating profit ¥77.5 billion (+2.4% YoY), and profit attributable to owners of parent ¥52.5 billion (+0.3% YoY).

• Annual dividend forecast raised to ¥42 per share (+¥5.3 YoY), with a progressive dividend policy and flexible share buybacks.