Shoei (7839) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months rose 3.7% year-over-year to ¥25,496 million, driven by higher unit prices and a weaker yen, despite a 10.8% decline in units sold.

• Operating income decreased 2.5% year-over-year to ¥7,839 million due to increased manufacturing costs and higher SG&A expenses at overseas subsidiaries.

• Profit attributable to owners of parent declined 1.2% year-over-year to ¥5,624 million.

Financial highlights

• Gross profit for the nine months was ¥11,820 million, up slightly from ¥11,713 million year-over-year.

• Ordinary income fell 0.8% year-over-year to ¥8,061 million.

• Comprehensive income increased to ¥5,832 million from ¥5,717 million year-over-year.

• Net assets per share rose to ¥522.63 as of June 30, 2024, from ¥506.60 at the previous fiscal year-end.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥35,120 million, operating income ¥9,630 million, net income ¥6,770 million, and EPS ¥126.42.

• Management expects continued benefit from the weak yen if exchange rates hold, but maintains a cautious outlook due to ongoing uncertainties.