Toyokumo (4058) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 FY2024 reached 749 million yen, up 27.6% year-over-year and 7.3% sequentially from Q1.

• Net sales for the six months ended June 30, 2024, were 1,448 million yen, with operating profit at 559 million yen and profit attributable to owners of parent at 386 million yen.

• Operating profit for Q2 FY2024 was 298 million yen, a 9.9% increase year-over-year and 14.3% higher than Q1.

• Annual recurring revenue (ARR) rose to 3,105 million yen, up 28.3% year-over-year and 7.3% quarter-over-quarter.

• Earnings per share for the period were 35.50 yen, with diluted EPS at 35.46 yen.

Financial highlights

• Gross profit for Q2 FY2024 was 727 million yen, up 27.1% year-over-year and 6.9% sequentially.

• SG&A expenses increased 42.7% year-over-year, with personnel expenses up 31.8% and advertising expenses up 63.7%.

• Total assets as of June 30, 2024, were 3,997.9 million yen, with net assets at 2,601.5 million yen and an equity ratio of 64.7%.

• Profit attributable to owners of parent was 206 million yen, up 9.7% year-over-year and 14.7% sequentially.

• Cash and deposits rose to 3,592 million yen as of June 30, 2024.

Outlook and guidance

• FY2024 net sales forecast is 3,000 million yen, a 14.3% increase year-over-year.

• Operating profit for FY2024 is projected at 1,000 million yen, up 14.3% year-over-year.

• Profit attributable to owners of parent for FY2024 is forecast at 690 million yen.

• Basic earnings per share forecast for FY2024 is 63.31 yen, with a payout ratio of 22.1% and dividend per share of 14.00 yen.