Alps Alpine (6770) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales rose 2.3% YoY to ¥238.9B; operating income surged 204.3% YoY to ¥3.7B, but ordinary income dropped 73.5% to ¥1.2B and net loss was ¥2.8B.

• Comprehensive income swung negative to ¥(5.3)B from ¥15.9B YoY, mainly due to adverse currency movements.

• Sales and earnings growth were driven by strong component sales in mobile and consumer markets and Mobility segment restructuring.

• Tariff impacts were smaller than expected, but yen appreciation and global policy shifts negatively affected results.

• The business environment was marked by global policy shifts, geopolitical risks, and US tariffs.

Financial highlights

• Gross profit declined to ¥39.7B from ¥41.5B YoY, while SG&A expenses fell to ¥35.9B from ¥40.3B.

• Basic earnings per share dropped to ¥(13.76) from ¥2.17 YoY.

• Total assets declined to ¥705.0B; equity ratio improved to 56.8% as of June 2025.

• Cash and deposits decreased by ¥31.8B due to repayment of short-term borrowings.

• FX losses in Q1 FY2025 were ¥3.7B, compared to FX gains of ¥2.7B in Q1 FY2024.

Outlook and guidance

• Full-year FY2025 sales forecast raised to ¥950B, up ¥40B from the previous plan, reflecting strong 1H and FX impact.

• Operating income forecast increased to ¥25B, up ¥8B; ordinary income forecast raised to ¥22.5B.

• Net profit forecast for the year is ¥5.5B, down 85.5% YoY.

• Upward revision for H1 due to stronger automotive and mobile demand and a weaker yen.

• 2H plan remains unchanged due to uncertainties, including exchange rates.