Lion Corporation (4912) Q4 2024 earnings summary

Executive summary

• Net sales and profits increased for the first time in four years, with consolidated net sales rising 2.5% year-on-year to ¥412.9 billion and operating income up 30.8%, driven by strong overseas growth and profit structure reforms.

• Overseas sales, especially in China, Southeast Asia, Thailand, and Malaysia, offset domestic declines and drove consolidated growth.

• Profit structure reforms, including price optimization, cost reductions, and portfolio changes, contributed to exceeding profit targets.

• Core operating income and profit attributable to owners of the parent both rose significantly, surpassing forecasts due to higher overseas sales and structural reforms.

• New product launches in Japan and successful portfolio reforms improved profitability.

Financial highlights

• Net sales: ¥412.9 billion (+2.5% YoY); core operating income: ¥26.3 billion (+30.8%); operating profit: ¥28.3 billion (+38.4%); profit attributable to owners: ¥21.1 billion (+44.9%); EPS: ¥76.51 (+48.8%).

• EBITDA: ¥45.1 billion (+18.8% YoY); EBITDA margin: 10.9% (up 1.5pp YoY).

• Gross profit rose by ¥2.5 billion mainly from overseas sales, while price revisions added ¥4.2 billion.

• Cost reductions totaled ¥2.8 billion, mainly from raw materials.

• Total assets: ¥497,167 million; equity ratio: 59.1%; cash and cash equivalents at year-end: ¥102,240 million.

Outlook and guidance

• Fiscal 2025 forecast: net sales ¥420.0 billion (+1.7%), core operating income ¥30.0 billion (+13.9%), operating profit ¥35.0 billion (+23.3%), profit attributable to owners ¥25.0 billion (+17.9%), EPS ¥90.24 (+17.9%).

• Overseas business expected to drive growth with a CAGR of 7.2%; consolidated sales growth target is 3% per year.

• Key 2027 targets: net sales ¥450.0 billion, EBITDA margin 13%+, ROIC 8–9%, EPS CAGR 11%+.

• Dividend to increase to ¥30 per share, payout ratio at 33–35.3%, with partial treasury stock cancellation planned.

• New medium-term plan (Vision2030 2nd STAGE) focuses on profitability and overseas growth.