WATAMI CO.,LTD., First Half Ordinary Profit Decreases by 44%

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Thu Nov 14, 2024 3:00 pm JST Earnings

7522 WATAMI CO.,LTD. 【J-GAAP】

Earnings Report

WATAMI CO.,LTD. <7522> [TSE-P] announced its financial results in the afternoon session on November 14th (15:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 44.3% from the same period last year to 1.88 billion yen, fell short of the previous forecast of 2.43 billion yen.

The progress rate against the 4.6 billion yen full-year plan was 41.0%, also falling below the same period of the previous year of 56.7%.

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 grow by 4.8% from the same period last year, reaching 2.71 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit/loss turned to a loss of 286 million yen (compared to a profit of 1.34 billion yen in the same period last year). However, the operating profit margin improved from 3.8% in the same period last year to 5.3%.

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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	39,050	923	4,182	3,229	79.5	107.7	Nov 11, 2022	J-GAAP
Apr - Sep, 2023	40,314	1,808	3,385	2,799	70.0	56.7	Nov 14, 2023	J-GAAP
Apr - Sep, 2024	43,386	2,215	1,886	1,437	29.9	41.0	Nov 14, 2024	J-GAAP
YoY	+7.6%	+22.5%	-44.3%	-48.7%	-57.3%

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	43,200	2,030	2,430	2,100	52.4	0	Aug 9, 2024	J-GAAP
Apr - Sep, 2024 Results	43,386	2,215	1,886	1,437	29.9	0	Nov 14, 2024	J-GAAP
Revision Rate	+0.4%	+9.1%	-22.4%	-31.6%	-43.0%

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	41,988	1,945	2,589	1,391	30.8	10	May 13, 2024	J-GAAP
Oct - Mar, 2024 Guidance	44,714	1,885	2,714	2,263	56.5	10	Nov 14, 2024	J-GAAP
YoY	+6.5%	-3.1%	+4.8%	+62.7%	+83.6%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	77,922	1,474	3,883	1,674	41.3	7.50	May 12, 2023	J-GAAP
Mar, 2024	82,302	3,753	5,974	4,190	92.7	10	May 13, 2024	J-GAAP
Mar, 2025 Guidance	88,100	4,100	4,600	3,700	92.3	10	Aug 9, 2024	J-GAAP
YoY	+7.0%	+9.2%	-23.0%	-11.7%	-0.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	20,623	788	1,340	1,017	25.4	3.8	Nov 14, 2023	J-GAAP
Oct - Dec, 2023	22,241	1,594	1,289	853	19.2	7.2	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	19,747	351	1,300	538	11.9	1.8	May 13, 2024	J-GAAP
Apr - Jun, 2024	21,414	1,046	2,172	1,701	39.5	4.9	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	21,972	1,169	-286	-264	-5.5	5.3	Nov 14, 2024	J-GAAP
YoY	+6.5%	+48.4%	－	－	－