Koito Manufacturing (7276) Q1 2025 earnings summary

Executive summary

• Net sales rose 1.7% year-over-year to ¥229.7 billion, driven by strong North America performance and a weaker Yen, offsetting declines in Japan and China.

• Operating income fell 38.6% year-over-year to ¥9.0 billion, recurring profit dropped 33.7% to ¥11.8 billion, and net income attributable to owners of parent declined 50.0% to ¥7.2 billion due to higher fixed costs and production suspensions.

• Comprehensive income decreased 49.7% year-over-year to ¥21.4 billion.

Financial highlights

• Gross profit decreased to ¥21.8 billion from ¥26.8 billion year-over-year.

• Net income per share was ¥23.87, down from ¥45.57 in the prior year.

• Cash and cash equivalents at quarter-end were ¥104.3 billion, down ¥30.2 billion from the previous fiscal year-end.

• Total assets decreased by ¥13.0 billion to ¥952.5 billion; net assets increased by ¥1.3 billion to ¥720.6 billion.

Outlook and guidance

• Full-year net sales forecast revised to ¥928.5 billion, down 2.3% year-over-year; operating income expected to fall 12.5% to ¥49.0 billion.

• Net income attributable to owners of parent projected to decrease 13.9% to ¥37.0 billion; EPS forecast at ¥122.00.

• Only North America is expected to see sales growth; all other regions forecasted to decline.

• Profitability pressured by inflation, labor shortages, and increased R&D and investment for new orders.