Murata Manufacturing (6981) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2024 was ¥421.7B, up 14.7% year-over-year, driven by strong demand in computers, mobility, IT infrastructure, and smartphones, aided by a weaker yen and improved operation rates.

• Operating profit increased 32.5% year-over-year to ¥66.4B, with profit before tax at ¥83.6B and profit attributable to owners at ¥66.4B.

• Growth was supported by higher operation rates and favorable currency effects, offsetting product price declines and higher fixed costs.

• Orders increased quarter-on-quarter, with a book-to-bill ratio above 1, reflecting firm demand and favorable currency effects.

Financial highlights

• Revenue rose to ¥421.7B (+14.7% YoY, +8.0% QoQ); operating profit reached ¥66.4B (+32.5% YoY, significant recovery from previous quarter).

• Profit before tax was ¥83.6B (+33.1% YoY), and profit attributable to owners was ¥66.4B (+32.5% YoY).

• Gross profit increased to ¥169.4B from ¥143.7B YoY; basic EPS rose to ¥35.30 from ¥26.52 YoY.

• Cash and cash equivalents at period end were ¥537.6B, up ¥114.7B YoY.

• Free cash flow improved to -¥3.1B from -¥16.3B YoY.

Outlook and guidance

• Full-year FY2024 revenue projected at ¥1,700B (+3.6% YoY), operating profit at ¥300B (+39.2% YoY), and profit attributable to owners at ¥235B (+30.0% YoY); dividend forecast unchanged at ¥54 per share.

• Basic earnings per share for the year ending March 2025 is forecast at ¥124.39.

• No change in expected exchange rates or economic value targets; production increase planned for smartphone seasonality in Q2 onward.

• No revisions to the previously announced forecast; actual results may differ due to economic, market, and currency risks.