SAFTEC CO.,LTD., First Half Ordinary Profit Revised Downward to an Unexpected 39%Decrease

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Thu Oct 31, 2024 3:10 pm JST Earnings

7464 SAFTEC CO.,LTD. 【J-GAAP】

Earnings Report

SAFTEC CO.,LTD. <7464> [TSE-S] announced its financial results after the market closed on October 31st (15:10). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 39.0% from the same period last year to 105 million yen, resulting in a decrease in profits compared to the previous forecast of a 16.9% increase.

The progress rate against the 600 million yen full-year plan was 17.5%, also falling below the five-year average of 40.0%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to expand by 32.0% from the same period last year, reaching 495 million yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit dropped to 119 million yen, a 44.7% decrease compared to the same period last year. The operating profit margin drastically worsened from 8.2% in the same period last year to 4.5%.

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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	5,023	445	442	282	147.7	50.6	Oct 28, 2022	J-GAAP
Apr - Sep, 2023	4,947	164	172	102	56.3	31.4	Oct 30, 2023	J-GAAP
Apr - Sep, 2024	5,176	104	105	31	17.7	17.5	Oct 31, 2024	J-GAAP
YoY	+4.6%	-36.6%	-39.0%	-69.6%	-68.6%

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	4,960	198	201	124	69.9	0	May 9, 2024	J-GAAP
Apr - Sep, 2024 Results	5,176	104	105	31	17.7	0	Oct 31, 2024	J-GAAP
Revision Rate	+4.4%	-47.5%	-47.8%	-75.0%	-74.7%

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	5,176	371	375	244	135.2	85	May 9, 2024	J-GAAP
Oct - Mar, 2024 Guidance	5,157	484	495	364	205.0	85	Oct 31, 2024	J-GAAP
YoY	-0.4%	+30.5%	+32.0%	+49.2%	+51.6%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	9,967	874	874	575	300.6	85	May 9, 2023	J-GAAP
Mar, 2024	10,123	535	547	346	191.8	85	May 9, 2024	J-GAAP
Mar, 2025 Guidance	10,333	588	600	395	222.5	85	May 9, 2024	J-GAAP
YoY	+2.1%	+9.9%	+9.7%	+14.2%	+16.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	2,546	210	215	171	94.5	8.2	Oct 30, 2023	J-GAAP
Oct - Dec, 2023	2,843	251	254	152	83.9	8.8	Jan 31, 2024	J-GAAP
Jan - Mar, 2024	2,333	120	121	92	51.0	5.1	May 9, 2024	J-GAAP
Apr - Jun, 2024	2,544	-15	-14	-40	-22.5	-0.6	Jul 31, 2024	J-GAAP
Jul - Sep, 2024	2,632	119	119	71	40.5	4.5	Oct 31, 2024	J-GAAP
YoY	+3.4%	-43.3%	-44.7%	-58.5%	-57.2%