MatsukiyoCocokara & Co (3088) Q4 2024 earnings summary

Executive summary

• Net sales rose 4.0% year-over-year to ¥801.5 billion for the nine months ended December 31, 2024, driven by strong cosmetics and medical/pharmaceutical sales, recovery in human flow, and duty-free sales.

• Operating profit increased 4.9% to ¥61.7 billion, with profit growth despite upfront investments in human capital, systems, and digital transformation.

• Profit attributable to owners of parent declined 2.5% year-over-year to ¥41.2 billion, reflecting higher costs and extraordinary losses.

• The company continued to invest in digital transformation, private brands, and customer engagement, while expanding its store network domestically and overseas.

Financial highlights

• Gross profit margin improved to 34.8% from 34.4% year-over-year, reflecting expanded sales of high value-added products.

• SG&A expenses increased 5.2% to ¥216.9 billion, representing 27.1% of net sales.

• Basic earnings per share for the nine months was ¥100.51, adjusted for a 3-for-1 stock split.

• Total assets stood at ¥717.7 billion, with net assets at ¥508.4 billion and an equity ratio of 70.7% as of December 31, 2024.

• Cash and deposits decreased by ¥8.8 billion to ¥108.9 billion during the period.

Outlook and guidance

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

• Basic earnings per share for the full year is projected at ¥128.02.

• Store network expansion plans unchanged, targeting 120 new openings and 80 renovations by March 2025.