Nakanishi (7716) Q4 2024 earnings summary

Executive summary

• Net sales reached a record 77,041 million yen in FY2024, up 29.1% YoY, driven by strong DCI and Surgical segments and yen depreciation, despite sluggish Industrial and weak Dental demand.

• EBITDA exceeded 20,460 million yen (+15.3% YoY), supported by M&A and currency effects.

• Net profit attributable to owners dropped 62.4% YoY to 8,577 million yen due to extraordinary losses, including JAEGER impairment.

• Retrospective adjustments were made for FY2023 after PPA completion for JAEGER, DCI, and REFINE.

• Comprehensive income fell 44.1% YoY to 14,285 million yen.

Financial highlights

• Net sales: 77,041M yen (+29.1% YoY); Gross profit: 44,418M yen (+23.1% YoY); EBITDA: 20,460M yen (+15.3% YoY).

• Operating profit: 14,596M yen (+2.4% YoY); Ordinary profit: 17,283M yen (+0.5% YoY).

• Profit attributable to owners: 8,577M yen (-62.4% YoY), impacted by extraordinary losses.

• EPS was 101.37 yen, down from 267.62 yen the previous year.

• Total assets increased to 158,299M yen, up 17,531M yen YoY.

Outlook and guidance

• FY2025 net sales forecast: 80,655M yen (+4.7% YoY); profit attributable to owners: 9,572M yen (+11.6% YoY).

• EBITDA expected to decrease to 18,932M yen (-7.5% YoY) due to cost increases and forex headwinds.

• Operating income forecasted at 13,150M yen (-9.9% YoY).

• Dividend per share forecast to rise to 54 yen.

• Assumed exchange rates: 145 yen/USD and 155 yen/EUR.