NEC Corporation, July-September (2Q) Net Income Decreases by 5%

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Tue Oct 29, 2024 3:00 pm JST Earnings

6701 NEC Corporation 【IFRS】

Earnings Report

NEC Corporation <6701> [TSE-P] announced its financial results (based on IFRS) after the market closed on October 29th (15:00). The consolidated net income for the cumulative second quarter of the fiscal year ending March 2025 (April to September) increased by 4.2% from the same period last year, reaching 13.4 billion yen. However, The progress rate against the 165 billion yen full-year plan was 8.2%, also falling below the five-year average of 11.6%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated net income for the October to March period (second half) is expected to grow by 10.9% from the same period last year, reaching 151 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated net income decreased to 19.2 billion yen, a 5.0% decrease compared to the same period last year. However, the operating profit margin improved from 4.3% in the same period last year to 5.0%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	1,455,371	13,867	24,111	3,973	14.6	14.4	Oct 28, 2022	IFRS
Apr - Sep, 2023	1,548,801	27,995	31,977	12,914	48.5	17.3	Oct 30, 2023	IFRS
Apr - Sep, 2024	1,486,676	44,693	26,677	13,460	50.5	ー	Oct 29, 2024	IFRS
YoY	-4.0%	+59.6%	-16.6%	+4.2%	+4.2%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	ー	ー	ー	ー	－	70	Apr 26, 2024	IFRS
Apr - Sep, 2024 Results	1,486,676	44,693	26,677	13,460	50.5	70	Oct 29, 2024	IFRS
Revision Rate	－	－	－	－	－

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	1,928,461	160,017	153,034	136,607	512.8	60	Apr 26, 2024	IFRS
Oct - Mar, 2024 Guidance	1,883,324	210,307	ー	151,540	568.5	70	Oct 29, 2024	IFRS
YoY	-2.3%	+31.4%	－	+10.9%	+10.9%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	3,313,018	170,447	167,671	114,500	424.5	110	Apr 28, 2023	IFRS
Mar, 2024	3,477,262	188,012	185,011	149,521	561.3	120	Apr 26, 2024	IFRS
Mar, 2025 Guidance	3,370,000	255,000	ー	165,000	619.0	140	Apr 26, 2024	IFRS
YoY	-3.1%	+35.6%	－	+10.4%	+10.3%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	842,259	36,120	34,440	20,302	76.2	4.3	Oct 30, 2023	IFRS
Oct - Dec, 2023	844,475	41,820	36,177	21,126	79.3	5.0	Jan 30, 2024	IFRS
Jan - Mar, 2024	1,083,986	118,197	116,857	115,481	433.5	10.9	Apr 26, 2024	IFRS
Apr - Jun, 2024	690,296	4,540	-3,323	-5,836	-21.9	0.7	Jul 30, 2024	IFRS
Jul - Sep, 2024	796,380	40,153	30,000	19,296	72.4	5.0	Oct 29, 2024	IFRS
YoY	-5.4%	+11.2%	-12.9%	-5.0%	-5.0%