Ricoh Leasing Company (8566) Q1 2025 earnings summary

Executive summary

• Net income rose significantly year-over-year, driven by growth in investment and service businesses and the absence of last year's extraordinary loss, despite a slight decrease in operating income due to higher SG&A and financial expenses.

• Net sales for the quarter ended June 30, 2024, were ¥75.6 billion, down 2.5% year-over-year; operating profit decreased 3.1% to ¥5.1 billion.

• Ordinary profit was ¥5.2 billion, a 1.0% decline from the same quarter last year.

• Comprehensive income rose 3.4% year-over-year to ¥3.3 billion.

• Earnings for the first quarter were generally in line with full-year forecasts, with net income reaching 24% of the annual target.

Financial highlights

• Gross profit increased 1.3% year-over-year to ¥11.2 billion, while SG&A expenses rose to ¥6.2 billion.

• Net income surged 273.2% to ¥3.5 billion, reflecting the absence of last year's extraordinary loss.

• Financial expenses rose 60.4% year-over-year due to higher short-term interest rates.

• Total assets as of June 30, 2024, were ¥1,276.6 billion, up from ¥1,247.3 billion at March 31, 2024.

• ROA improved to 1.14% and ROE to 6.5% (annualized figures).

Outlook and guidance

• Full-year net sales forecasted at ¥315.0 billion, up 2.2% year-over-year, with operating profit projected at ¥21.1 billion.

• Net income for FY2025 is expected to grow 30.3% year-over-year to ¥14.7 billion.

• Gross profit is projected to offset increases in financial and SG&A expenses.

• Annual dividend per share is forecast at ¥165, marking 30 consecutive years of increases.

• Operating assets are expected to rise by ¥75.0 billion, mainly in loans and investment businesses.