Nichiha (7943) Q1 2025 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2025 rose 9.4% year-over-year to ¥35,925 million, driven by strong overseas growth and stable domestic performance.

• Operating income increased 4.8% year-over-year to ¥1,704 million, with an operating margin of 4.7%.

• Net income attributable to shareholders declined 5.7% year-over-year to ¥1,656 million.

• Comprehensive income surged to ¥3,677 million, up from ¥2,420 million a year earlier.

Financial highlights

• Domestic sales grew 10.2% year-over-year, while overseas sales surged 46.7%.

• Gross profit increased 7.2% year-over-year to ¥12,281 million, with a gross margin of 34.2%.

• Operating income margin slightly decreased to 4.7% from 5.0% in the prior year.

• Earnings per share was ¥47.02, nearly flat compared to ¥46.92 last year.

• Equity ratio increased to 73.1% as of June 30, 2024, from 72.0% at March 31, 2024.

Outlook and guidance

• Full-year consolidated net sales forecast is ¥148,500 million, up 4.0% year-over-year.

• Full-year operating income is projected at ¥11,500 million, up 12.7% year-over-year.

• Profit attributable to owners of parent expected to reach ¥8,500 million, up 5.4% year-over-year.

• Interim sales forecast is ¥72,000 million, with operating income of ¥4,500 million.

• Annual dividend forecast maintained at ¥114.00 per share.