PARK24 Co (4666) Q4 2024 earnings summary

Executive summary

• FY2024 saw strong domestic growth, with net sales up 12.4% and operating profit up 21.0%, but profit attributable to owners of parent missed initial targets due to impairment losses in the UK and tax expenses in Australia, though it still rose 6.2% year-over-year.

• Comprehensive income increased 6.6% year-over-year.

• FY2025 targets record-high sales and profits, focusing on network expansion, digitalization, and next-generation mobility services, with moderate profit growth expected due to upfront investments.

Financial highlights

• FY2024 net sales: ¥370.9B (+12.4% YoY, +¥13.9B vs. plan); operating profit: ¥38.7B (+21.0% YoY, +¥3.6B vs. plan); recurring profit: ¥35.4B (+28.1% YoY, +¥4.4B vs. plan); profit attributable to owners of parent: ¥18.6B (+6.2% YoY, ¥-1.3B vs. plan).

• Impairment loss of ¥1.9B in the UK and tax expense of ¥1.5B in Australia impacted net income.

• Net income per share: ¥109.20; net assets per share: ¥457.79.

• Cash flows from operating activities: ¥54,176 million; free cash flow: ¥16,612 million.

• Shareholders' equity reached ¥89.0B with a 30.1% equity ratio.

Outlook and guidance

• FY2025 forecast: net sales ¥404.0B (+8.9% YoY), operating profit ¥39.0B (+0.8% YoY), recurring profit ¥35.5B (+0.2% YoY), profit attributable to owners of parent ¥21.5B (+15.4% YoY).

• Focus on accelerating network expansion, evolving services, digitalization, and investing in human resources and ICT for sustainable growth.

• Dividend forecast for FY2025 is ¥30/share (DOE 5.2%), with a target DOE of 10% in FY2026.