PARK24 Co (4666) Q4 2024 earnings summary

Executive summary

• FY2024 saw strong domestic performance with net sales up 12.4% and operating profit up 21.0%, but net income missed initial targets due to impairment losses in the UK and tax expenses in Australia, though profit attributable to owners of parent still rose 6.2%.

• Comprehensive income increased 6.6% year-over-year.

• FY2025 targets record-high sales and profits, with continued network expansion, service evolution, and investments in sustainable growth, though profit growth will be moderate due to upfront investments.

Financial highlights

• FY2024 net sales: ¥370.9B (+12.4% YoY); operating profit: ¥38.7B (+21.0% YoY); recurring profit: ¥35.4B (+28.1% YoY); profit attributable to owners of parent: ¥18.6B (+6.2% YoY), missing plan by ¥1.3B due to UK impairment and Australia tax loss.

• Net income per share: ¥109.20; net assets per share: ¥457.79.

• Cash flows from operating activities: ¥54,176 million; free cash flow: ¥16,612 million.

• Shareholders' equity reached ¥89.0B with a 30.1% equity ratio; FY2025 plan: equity ratio 34.3%, net D/E ratio 0.82.

• Dividend per share: ¥5 for FY2024, forecast ¥30 for FY2025.

Outlook and guidance

• FY2025 forecast: net sales ¥404.0B (+8.9% YoY), operating profit ¥39.0B (+0.8% YoY), recurring profit ¥35.5B (+0.2% YoY), profit attributable to owners of parent ¥21.5B (+15.4% YoY).

• Focus on accelerating network expansion, digitalization, and next-generation parking and mobility services, with investments in human resources and ICT.

• Dividend forecast for FY2025 is ¥30/share (DOE 5.2%), with a target DOE of 10% in FY2026.