KYOWA LEATHER CLOTH CO.,LTD, First Half Ordinary Profit Revised Downward to an Unexpected 17%Decrease

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Wed Oct 30, 2024 3:30 pm JST Earnings

3553 KYOWA LEATHER CLOTH CO.,LTD 【J-GAAP】

Earnings Report

KYOWA LEATHER CLOTH CO.,LTD <3553> [TSE-S] announced its financial results after the market closed on October 30th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) decreased by 16.7% from the same period last year to 834 million yen, resulting in a decrease in profits compared to the previous forecast of a 9.9% increase.

The progress rate against the 2.65 billion yen full-year plan was 31.5%, almost the same as the five-year average of 32.9%.

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 6.6% from the same period last year, reaching 1.81 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit significantly dropped to 305 million yen, a 53.5% decrease compared to the same period last year. The operating profit margin worsened from 5.3% in the same period last year to 3.7%.

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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	21,593	-364	133	89	3.7	22.5	Oct 31, 2022	J-GAAP
Apr - Sep, 2023	24,039	884	1,001	647	26.9	37.0	Oct 31, 2023	J-GAAP
Apr - Sep, 2024	26,100	923	834	531	22.2	31.5	Oct 30, 2024	J-GAAP
YoY	+8.6%	+4.4%	-16.7%	-17.9%	-17.3%

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	26,000	1,000	1,100	700	29.4	16	May 8, 2024	J-GAAP
Apr - Sep, 2024 Results	26,100	923	834	531	22.2	16	Oct 30, 2024	J-GAAP
Revision Rate	+0.4%	-7.7%	-24.2%	-24.1%	-24.3%

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	27,998	1,683	1,703	1,311	54.4	18	May 8, 2024	J-GAAP
Oct - Mar, 2024 Guidance	26,900	1,677	1,816	1,219	51.2	16	Oct 30, 2024	J-GAAP
YoY	-3.9%	-0.4%	+6.6%	-7.0%	-6.0%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	45,792	237	591	347	14.4	20	May 9, 2023	J-GAAP
Mar, 2024	52,037	2,567	2,704	1,958	81.3	32	May 8, 2024	J-GAAP
Mar, 2025 Guidance	53,000	2,600	2,650	1,750	73.4	32	May 8, 2024	J-GAAP
YoY	+1.9%	+1.3%	-2.0%	-10.6%	-9.7%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	12,540	664	656	430	17.9	5.3	Oct 31, 2023	J-GAAP
Oct - Dec, 2023	14,833	1,377	1,330	1,002	41.6	9.3	Feb 6, 2024	J-GAAP
Jan - Mar, 2024	13,165	306	373	309	12.8	2.3	May 8, 2024	J-GAAP
Apr - Jun, 2024	12,342	420	529	353	14.7	3.4	Jul 30, 2024	J-GAAP
Jul - Sep, 2024	13,758	503	305	178	7.5	3.7	Oct 30, 2024	J-GAAP
YoY	+9.7%	-24.2%	-53.5%	-58.6%	-58.2%