Nippon Sheet Glass Company (5202) Q1 2025 earnings summary

Executive summary

• Revenue increased by 4% year-over-year to JPY 216.4 bn, mainly driven by Automotive growth, despite challenging market conditions in Europe and other regions.

• Operating profit dropped 67.3% year-over-year to JPY 4.8 bn, mainly due to reduced profitability in the Architectural segment and the European economic slowdown.

• Net profit attributable to owners fell 65.8% year-over-year to JPY 2.4 bn, reflecting lower operating profit and absence of prior year one-off gains.

• Shareholders' equity ratio improved to 13.9% from 12.3% at the previous year end.

• Interest-bearing debt increased, mainly due to negative free cash flow and seasonal working capital movement.

Financial highlights

• Q1 revenue rose to JPY 216.4 bn from JPY 208.0 bn year-over-year.

• Operating profit dropped to JPY 4.8 bn from JPY 14.6 bn year-over-year.

• Net profit attributable to owners fell to JPY 2.4 bn from JPY 7.0 bn year-over-year.

• Free cash outflow was JPY 31.7 bn, similar to the previous year.

• Earnings per share (basic) dropped to JPY 21.01 from JPY 71.95 year-over-year.

Outlook and guidance

• Full-year revenue forecast maintained at JPY 840.0 bn; operating profit forecast reduced to JPY 12.0 bn (down 53.9% year-over-year).

• Net profit forecast for the year reduced to zero or JPY 2.0 bn, with basic EPS of JPY (21.40).

• Medium-term plan targets by FY2027: operating profit JPY 64.0 bn, return on sales 7%, free cash flow JPY 27.0 bn, shareholders' equity ratio 15%.

• Assumptions include stable energy/material costs, rising labor costs, and continued cost reduction efforts.

• Actions underway to improve profits, including cost reductions and price negotiations.