The Japan Wool Textile Co Ltd (3201) Q2 2024 earnings summary

Executive summary

• Sales for 1H 2024 decreased 1.7% year-over-year to ¥53,608 million, mainly due to downsizing in the Human & Future Development segment, while operating income rose 2.2% to ¥4,668 million and ordinary income increased 5.2% to ¥5,062 million.

• Profit attributable to owners of parent fell into a loss of ¥48 million, down from a profit of ¥137 million in 1H 2023, though another source reports a 10.9% year-over-year increase to ¥3,674 million.

• Comprehensive income surged 59.0% year-over-year to ¥6,855 million.

• The company continues to focus on profitability and risk management, with segment restructuring and cost controls.

Financial highlights

• Operating margin improved to 8.7% from 8.4% year-over-year.

• Cash flow from operating activities increased to ¥6,121 million, while investing activities outflow rose to ¥-3,755 million.

• Total assets grew to ¥173,712 million, with shareholders' equity at ¥106,440 million and net assets at ¥119,543 million.

• Basic earnings per share for the six months was ¥53.30, up from ¥46.86 year-over-year.

• Capital adequacy ratio was 68.2%.

Outlook and guidance

• FY2024 sales are forecast at ¥111,000 million, down 2.2% from FY2023, with operating income expected to be flat at ¥11,000 million.

• Profit attributable to owners of parent is forecast to rise slightly to ¥7,700 million.

• Basic earnings per share for the full year is expected to be ¥111.73.

• Segment forecasts show continued growth in Textile & Clothing Materials and Industrial Machinery & Materials, but a significant sales decline in Human & Future Development.

• The company aims for a dividend payout ratio of 35% by the end of the third medium-term plan.