Sumitomo Forestry Full Year 2024 Earnings: In Line With Expectations

Sumitomo Forestry (TSE:1911) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥2.05t (up 19% from FY 2023).
• Net income: JP¥116.5b (up 14% from FY 2023).
• Profit margin: 5.7% (down from 5.9% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: JP¥569 (up from JP¥506 in FY 2023).

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

Sumitomo Forestry Meets Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.

The primary driver behind last 12 months revenue was the Overseas Housing/Construction/Real Estate Business segment contributing a total revenue of JP¥1.24t (60% of total revenue). Notably, cost of sales worth JP¥1.55t amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to JP¥308.4b (80% of total expenses). Explore how 1911's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.1% p.a. on average during the next 3 years, while revenues in the Consumer Durables industry in Japan are expected to remain flat.

Performance of the Japanese Consumer Durables industry.

The company's shares are down 5.1% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Sumitomo Forestry that you need to be mindful of.

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