Daiei Kankyo (9336) Q1 2025 earnings summary

Executive summary

• Net sales rose 9.9% year-over-year to ¥19,353 million for the three months ended June 30, 2024, driven by infrastructure project orders and expansion in plastic recycling initiatives.

• Operating profit increased 12.9% year-over-year to ¥5,096 million, with margin improving to 26.3% from 25.6% due to cost reductions and insourcing.

• Profit attributable to owners of parent grew 16.0% year-over-year to ¥3,497 million; EBITDA rose 15.7% to ¥6,724 million.

• The company expanded its waste plastic recycling system, participating in projects in four municipalities and integrating Eiwa Recycle Co., Ltd. as a consolidated subsidiary.

Financial highlights

• Gross profit increased to ¥8,748 million from ¥7,703 million year-over-year.

• Ordinary profit rose 13.1% year-over-year to ¥5,369 million.

• Basic earnings per share improved to ¥35.28 from ¥30.18 year-over-year.

• Comprehensive income for the quarter was ¥3,772 million, up 13.8% year-over-year.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2025: net sales ¥78,500 million (+7.5% year-over-year), operating profit ¥20,500 million (+4.4%), profit attributable to owners of parent ¥13,700 million (+1.0%), EPS ¥138.53.

• No revisions to previously announced earnings or dividend forecasts.