Nissui (1332) Q1 2025 earnings summary

Executive summary

• Net sales rose 10.4% year-over-year to ¥220.6 billion, driven by strong Food Products, Marine Products recovery, and favorable foreign exchange rates.

• Operating profit was flat at ¥9.7 billion, as Food Products' cost reductions offset Marine Products' struggles.

• Profit attributable to owners of parent declined 11.6% year-over-year to ¥5.2 billion, impacted by the absence of prior-year gains from cross-shareholding sales.

• Comprehensive income increased to ¥12.6 billion.

• Marine Products saw higher sales but a significant drop in operating profit; Food Products and General Distribution posted both sales and profit growth.

Financial highlights

• Gross profit increased by ¥2.8 billion year-over-year to ¥35.8 billion.

• SGA expenses rose by ¥2.8 billion, offsetting gross profit gains.

• EPS for Q1 FY2024 was ¥17.02, down from ¥19.22 in Q1 FY2023.

• Total assets grew 4.2% to ¥631.6 billion, and net assets rose 3.2% to ¥265.6 billion compared to March 2024.

• Dividend forecast for FY2024 is unchanged at ¥24.00 per share.

Outlook and guidance

• FY2024 is the final year of the mid-term plan, with Q1 results ahead of targets.

• Full-year forecast maintained: net sales ¥875 billion, operating profit ¥32.5 billion, ordinary profit ¥35 billion, profit attributable to owners of parent ¥24 billion, EPS ¥77.21.

• No revisions to the forecast as of this quarter.

• Cross-shareholdings to be sold in Q2 or later.