Nippon Yusen Kabushiki Kaisha (9101) Q1 2025 earnings summary

Executive summary

• Q1 FY2024/FY2025 revenue rose to JPY 651.7 billion, up 14.8% or JPY 84.1 billion year-over-year, with profit attributable to owners up JPY 36.7 billion to JPY 110.2 billion.

• Recurring profit reached JPY 125.7 billion, up JPY 36.3 billion or 40.7% year-over-year.

• Strong non-operating income included JPY 58.1 billion in equity earnings from affiliates, notably JPY 46.5 billion from ONE.

• Segment reporting revised, splitting bulk shipping into automotive, dry bulk, and energy, and moving real estate into Others.

• Share repurchase program ongoing, with 8,061,300 shares bought for JPY 38.5 billion as of July 31, 2024.

Financial highlights

• Operating profit for Q1 FY2024 was JPY 65.8 billion, up JPY 18.7 billion year-over-year.

• EPS for the quarter was JPY 240.93, compared to JPY 144.62 a year earlier.

• Gross profit rose to JPY 127.4 billion from JPY 105.2 billion year-over-year.

• Total assets increased to JPY 4,336.7 billion, equity to JPY 2,884.4 billion, and shareholders' equity ratio to 65.5%.

• Interest-bearing debt decreased by JPY 125.3 billion to JPY 788.4 billion.

Outlook and guidance

• Full-year FY2024/FY2025 forecast revised upward: revenue JPY 2.57 trillion (+JPY 280 billion), recurring profit JPY 410 billion (+JPY 160 billion), net profit JPY 390 billion (+JPY 145 billion).

• Interim and year-end dividends each raised by JPY 50 to JPY 130 per share, for a full-year dividend of JPY 260 per share.

• Share buyback program of up to JPY 100 billion (35 million shares) underway, with 8.06 million shares acquired by end of July 2024.

• All operational segments revised upward, with liner trade and automotive showing the largest increases.

• Assumptions include FX rate of JPY 151.26/US$ and bunker oil price of US$606.15/MT for the year.