Sanyo Trading (3176) Q4 2024 earnings summary

Executive summary

• Net sales and operating profit reached record highs, with net sales rising 7.2% year-over-year to ¥129,263 million and operating profit up 8.4% to ¥7,072 million, surpassing upwardly revised forecasts for the fiscal year ended September 30, 2024.

• Profit attributable to owners of parent increased 8.8% to ¥5,207 million.

• Growth was driven by strong domestic demand, a weaker yen, and expansion in high value-added and overseas businesses, with overseas subsidiaries in the USA, Thailand, and Mexico showing strong performance.

• Progress was made toward the SANYO VISION 2028 financial targets, with a strong start in the first year of the plan.

• Strategic investments included wood biomass projects, a new materials informatics partnership, and European expansion.

Financial highlights

• Net sales rose 7.2% year-over-year to ¥129,263 million; gross profit increased 10.6% to ¥22,229 million (gross profit ratio 17.2%).

• Operating profit grew 8.4% year-over-year to ¥7,072 million (operating profit ratio 5.5%).

• Ordinary profit increased 11.5% to ¥7,905 million; profit attributable to owners of parent rose 8.8% to ¥5,207 million.

• EPS improved to ¥180.88.

• Cash and cash equivalents at year-end were ¥7,367 million, up ¥467 million from the previous year.

Outlook and guidance

• For FY ending September 2025, net sales are forecast to rise 2.1% to ¥132,000 million.

• Operating profit is expected to remain stable at ¥7,100 million (+0.4%), despite the end of some distributor agreements and product discontinuations.

• Ordinary profit is forecast at ¥7,500 million (−4.2%), and profit attributable to owners of parent at ¥4,900 million (−5.9%).

• EPS is projected at ¥170.17.

• Annual dividend forecast for 2025 is ¥57 per share.