OSG (6136) Q4 2024 earnings summary

Executive summary

• FY2024 net sales reached ¥155.5 billion, up 5.3% year-over-year, but operating profit fell 4.7% to ¥18.9 billion and net profit attributable to owners decreased 6.1% to ¥13.4 billion.

• Comprehensive income dropped 48.4% year-over-year to ¥12.7 billion due to significant foreign currency translation losses.

• Overseas sales ratio increased to 68.0%, with notable growth in the Americas and Europe/Africa, while Japan and Asia saw more modest gains.

Financial highlights

• Net sales: ¥155.5 billion (+5.3%); operating profit: ¥18.9 billion (-4.7%); net profit: ¥13.4 billion (-6.1%).

• EBITDA: ¥31.6 billion (-0.1%); EBITDA margin: 20.4% (-1.1 pts); free cash flow: ¥6.8 billion, down ¥7.9 billion year-over-year.

• Equity ratio declined to 64.8% from 72.6%; net assets decreased to ¥179.4 billion from ¥194.6 billion.

• Net cash position dropped to ¥6.7 billion from ¥29.3 billion; cash and cash equivalents at year-end were ¥48.2 billion, down from ¥49.7 billion.

• Dividend per share remained at ¥60.00, with a payout ratio of 40.2%.

Outlook and guidance

• FY2025 net sales forecasted at ¥160.0 billion (+2.9%); operating profit expected to rise 11.3% to ¥21.0 billion.

• Net income attributable to owners projected at ¥14.5 billion (+7.9%); EPS forecasted at ¥170.75 (+14.6%).

• Exchange rate assumptions: 1 USD = ¥150, 1 Euro = ¥159.