WATANABE SATO CO., LTD., First Half Ordinary Profit Turns to Loss, July-September Ordinary Profit Decreases by 84%

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Thu Nov 7, 2024 1:00 pm JST Earnings

1807 WATANABE SATO CO., LTD. 【J-GAAP】

Earnings Report

WATANABE SATO CO., LTD. <1807> [TSE-S] announced its financial results in the afternoon session on November 7th (13:00). The consolidated ordinary profit/loss for the cumulative second quarter of the fiscal year ending March 2025 (April to September) turned into a loss of 262 million yen (compared to a profit of 240 million yen in the same period last year).

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 38.6% from the same period last year, reaching 2.11 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit significantly dropped to 47 million yen, a 84.5% decrease compared to the same period last year. The operating profit margin worsened from 3.1% in the same period last year to 0.3%.

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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	14,486	-283	-268	-199	-32.8	ー	Nov 10, 2022	J-GAAP
Apr - Sep, 2023	16,109	202	240	155	25.5	13.6	Nov 9, 2023	J-GAAP
Apr - Sep, 2024	16,135	-342	-262	-250	-40.2	ー	Nov 7, 2024	J-GAAP
YoY	+0.2%	－	－	－	－

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	－	40	May 10, 2024	J-GAAP
Apr - Sep, 2024 Results	16,135	-342	-262	-250	-40.2	40	Nov 7, 2024	J-GAAP
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	22,291	1,448	1,524	1,047	170.3	75	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	23,865	2,142	2,112	1,450	232.7	40	Nov 7, 2024	J-GAAP
YoY	+7.1%	+47.9%	+38.6%	+38.5%	+36.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	34,656	616	709	446	73.4	50	May 11, 2023	J-GAAP
Mar, 2024	38,400	1,650	1,764	1,202	195.5	75	May 10, 2024	J-GAAP
Mar, 2025 Guidance	40,000	1,800	1,850	1,200	192.6	80	May 10, 2024	J-GAAP
YoY	+4.2%	+9.1%	+4.9%	-0.2%	-1.5%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	9,631	301	303	198	32.6	3.1	Nov 9, 2023	J-GAAP
Oct - Dec, 2023	10,373	695	720	468	76.4	6.7	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	11,918	753	804	579	94.2	6.3	May 10, 2024	J-GAAP
Apr - Jun, 2024	7,228	-373	-309	-269	-43.3	-5.2	Aug 8, 2024	J-GAAP
Jul - Sep, 2024	8,907	31	47	19	3.1	0.3	Nov 7, 2024	J-GAAP
YoY	-7.5%	-89.7%	-84.5%	-90.4%	-90.6%