Marubeni Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Marubeni (TSE:8002) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥7.25t (down 21% from FY 2023).
• Net income: JP¥470.5b (down 13% from FY 2023).
• Profit margin: 6.5% (up from 5.9% in FY 2023). The increase in margin was driven by lower expenses.
• EPS: JP¥280 (down from JP¥316 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Marubeni EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 9.3%. Earnings per share (EPS) exceeded analyst estimates by 1.5%.

The primary driver behind last 12 months revenue was the Agri Business segment contributing a total revenue of JP¥1.45t (20% of total revenue). Notably, cost of sales worth JP¥6.18t amounted to 85% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to JP¥789.5b (100% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of JP¥143.2b. Explore how 8002's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.4% p.a. on average during the next 3 years, while revenues in the Trade Distributors industry in Japan are expected to remain flat.

Performance of the Japanese Trade Distributors industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Be aware that Marubeni is showing 2 warning signs in our investment analysis and 1 of those is a bit unpleasant...

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