OSG (6136) Q3 2024 earnings summary

Executive summary

• Achieved record high sales in FY2024-3Q, driven by foreign exchange impact, with only a slight profit increase due to higher labor costs.

• Net sales for FY2024 Q3 rose 7.1% year-over-year to ¥115,326 million, with operating income up 2.7% to ¥14,459 million.

• Net income declined 2.5% year-over-year to ¥9,790 million; comprehensive income dropped 59.9% to ¥7,349 million.

• Overseas sales ratio reached 68.8%, reflecting strong international presence.

• Business conditions varied by region: Americas and Europe/Africa faced uncertainty, while Greater China showed gradual recovery.

Financial highlights

• FY2024-3Q net sales rose 7.0% year-over-year to ¥115,326 million; operating profit up 2.7% to ¥14,459 million.

• Net profit declined 2.5% year-over-year to ¥9,790 million; EPS increased 1.8% to ¥106.71.

• EBITDA for FY2024-3Q was ¥23.8 billion with a margin of 20.7%.

• Equity ratio decreased to 65.1% from 72.6% at FY23 year-end.

• Gross profit increased to ¥47,488 million from ¥43,772 million year-over-year.

Outlook and guidance

• FY2024 full-year net sales forecast maintained at ¥153,000 million; operating profit revised down 17.4% to ¥19,000 million.

• Net income forecast reduced 16.1% to ¥13,000 million; EPS guidance cut to ¥144.11.

• Final dividend forecast at ¥32.00 per share; payout ratio expected to rise to 41.6%.

• No revision to annual dividend forecast; remains at ¥60.00 per share.

• Full-year guidance projects modest sales growth but lower profits.