Daido Metal (7245) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 rose 10.8% year-over-year to ¥33,215 million, with operating profit up 55.4% to ¥1,389 million and net profit attributable to owners up 175.2% to ¥467 million.

• Profit growth driven by higher sales, favorable exchange rates, and cost improvements, offset by increased labor costs.

• Comprehensive income grew 35.2% year-over-year to ¥2,152 million.

Financial highlights

• Operating margin improved to 4.2% from 3.0% year-over-year; ordinary profit margin rose to 4.1%.

• Gross profit improved to ¥7,926 million from ¥6,818 million year-over-year.

• Net interest-bearing debt decreased by 2.7% to ¥35,409 million.

• Net assets to total assets ratio improved to 36.5% from 34.6% year-over-year.

• Basic earnings per share increased to ¥9.91 from ¥3.60 year-over-year.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥131,000 million, up 1.8% year-over-year; operating profit expected to be ¥6,000 million, down 1.4%.

• Net profit for FY2024 forecast at ¥2,500 million, down 2.7% year-over-year.

• Second quarter FY2024 net sales forecast at ¥65,000 million, up 2.6% year-over-year; operating profit expected at ¥2,400 million, up 8.6%.

• Basic earnings per share for the year forecast at ¥53.04.

• Dividend forecast for FY2025 is ¥15.00 per share, unchanged from the previous year.