Sakuma Exports reports strong profit growth, but net sales show decline

Sakuma Exports, a smallcap trading company, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance in terms of profit before tax and after tax, with a growth of 226.3% and 332.4% respectively, compared to the average of the previous four quarters. This has resulted in an increase in the company's score from -1 to 12 in the last three months.

The operating profit for the quarter was also at its highest in the last five quarters, indicating a positive trend. The company's efficiency has also improved, with the operating profit margin at its highest in the last five quarters. This shows that Sakuma Exports has been able to create higher earnings for its shareholders.

However, the net sales for the quarter have fallen by -23.8% compared to the average of the previous four quarters. This is a cause for concern as it indicates a negative trend in sales. Additionally, the company's non-operating income, which is 34.06% of the profit before tax, is high. This could be due to income from non-business activities, which may not be sustainable in the long run.

MarketsMOJO has given a 'Hold' call for Sakuma Exports' stock, taking into consideration its financial performance for the quarter. Investors are advised to carefully monitor the company's sales trend and non-operating income in the coming quarters.