Glory (6457) Q4 2024 earnings summary

Executive summary

• FY2024 consolidated sales were ¥369.0 billion, down 0.9% year-over-year, with operating income at ¥35.1 billion, a 31.3% decrease, mainly due to the end of new banknote issuance demand in Japan, despite record overseas sales growth.

• Net income attributable to owners of parent fell 45.8% to ¥16.0 billion, impacted by lower domestic demand, higher costs, and FX losses.

• Overseas sales grew 13.4%, especially in the Americas, EMEA, Europe, and Asia, while domestic sales and income declined.

• The company launched the 2026 Medium-term Management Plan focused on digital transformation and operational efficiency.

Financial highlights

• EBITDA decreased 18% to ¥59.2 billion.

• Free cash flow improved significantly to ¥37.8 billion, up from ¥8.2 billion in FY2023.

• Ownership equity ratio improved to 53.3% from 48.5% year-over-year.

• Cash and cash equivalents at year-end were ¥51,468 million, up from ¥35,173 million.

• Dividend for the year was ¥108 per share, with a payout ratio of 62.5%.

Outlook and guidance

• FY2025 sales forecast is ¥340.0 billion (down 7.9%), with operating income projected at ¥21.5 billion (down 38.7%) and net income at ¥10.0 billion (down 37.5%).

• Company will adopt IFRS from FY2026, with IFRS-based revenue forecast at ¥340.0 billion and profit attributable to owners of parent at ¥17.0 billion.

• Dividend per share planned at ¥112 for FY2025 and FY2026, with a total return ratio target of 100% or more.