![USS Co., Ltd. (4732) Announces FY2024 Results and Revises Shareholder Return Policy Formulation. [May 08, 2024]](https://financial-textbook.com/wp-content/uploads/2024/05/eyecatch_093.webp)
USS Co., Ltd. (4732) announced its FY2024 financial results on May 8 (Japan time). The company also revised its shareholder return policy formulation.
- Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
- Shareholder Return Policy for the Next Three Years (from FY2025 to FY2027) and Notice Concerning Determination of Dividends from Surplus (Dividend Increase) with a Record Date of March 31, 2024
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The sales and other figures used in this article are current as of the time of writing. Depending on your viewing period, the figures may have changed significantly.
Table of Contents(目次)
FY2024 Results and FY2025 Forecasts
| FY2024 | Compared with FY2023 | FY2025 (forecast) | Compared with FY2024 | |
|---|---|---|---|---|
| Revenue | 97,606 Million yen | 9.9% | 101,900 Million yen | 4.4% |
| Operating income | 48,937 Million yen | 11.8% | 51,500 Million yen | 5.2% |
| Ordinary income | 49,654 Million yen | 11.6% | 52,200 Million yen | 5.1% |
| Net income attributable to owners of the parent | 32,906 Million yen | 9.7% | 16,900 Million yen | 6.4% |
| Net income per share | 68.28 yen | 72.85 yen |
USS FY2024 saw an increase in revenue and profit. Revenue was 97,606 million yen, up 9.9% from the previous year. Net income was 32,906 million yen, up 9.7%.
USS continues to forecast higher sales and profits for FY2025. The company announced revenue and net income growth forecasts of 4.4% and 6.4%, respectively.
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About Dividends
The amount of USS's FY2024 dividend has been determined. The projected dividend for FY2025 was also announced.
Since USS conducted a 2-for-1 stock split, the following table has been edited to reflect the stock split.
| FY2024 | FY2025 (forecast) | |
|---|---|---|
| End of 2nd quarter | 17.35 yen | 20.1 yen |
| End of term | 20.35 yen | 20.1 yen |
| Total | 37.7 yen | 40.2 yen |
| Dividend payout ratio | 55.1% | 55.2% |
Since USS has a minimum dividend payout ratio of 55%, the dividend amount is in line with the FY2024 results and the FY2025 forecast.
USS has announced the following shareholder returns for the next three years.
- Consolidated dividend payout ratio: 55% or more
- A total return ratio of 80% or more
The Company plans to repurchase its own shares over the next three years so that the total return ratio will be 80% or more for each fiscal year. The scale and timing of share buybacks will be disclosed as soon as they are determined.
USS's dividend policy has always adhered to this ratio since the "dividend payout ratio of 55% or more" was announced in FY2020. However, share buybacks have sometimes been large and sometimes small, depending on the year. For example, USS's total payout ratio in FY2024 was 91%, but in FY2023, it was only 60.5%. USS has set a numerical target of 80% for the total return ratio for the next three years and has issued a message that it will further enhance shareholder returns.
Company Growth
The company plans to return a dividend payout ratio of 80% or more to shareholders while at the same time investing in growth on a cumulative scale of more than 20 billion yen over the next three years. The company's medium- to long-term management goals include achieving a 50% market share of the auto auction market (39.6% in calendar year 2023) and expanding its recycling business.
Finally
I think the USS's FY2024 earnings announcement was fine. Also, the FY2025 forecast appears to be conservative but not at a bad level. I expect that they may be revised upward in some cases.
I will continue to watch the company's performance.
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