Rinnai (5947) Q1 2025 earnings summary

Executive summary

• Net sales reached ¥98.1 billion, up 9.3% year on year, marking a record high, driven by price revisions, favorable FX rates, and robust sales of priority products in Japan and strong overseas performance, especially in the US and Indonesia.

• Operating income surged 180.0% year on year to ¥8.7 billion, with an operating margin of 8.9%, supported by cost reductions, price increases, and offsetting high raw material costs.

• Net income attributable to owners was ¥6.8 billion, up 107.3% year on year, reflecting improved profitability and FX gains.

• Cost reduction efforts and price revisions offset raw material cost increases.

• Recovery in major markets as inventory issues dissipated, with strong progress toward medium-term business plan goals.

Financial highlights

• Ordinary income rose 84.7% year on year to ¥10.8 billion, with an ordinary income margin of 11.1%.

• Gross profit increased to ¥32.7 billion from ¥26.0 billion year on year, and gross margin improved to 33.3% from 28.9%.

• Net income per share was ¥47.71, up from ¥22.49 in the prior year.

• Comprehensive income nearly doubled to ¥15.1 billion.

• Equity ratio improved to 68.5% from 67.2% at the previous fiscal year-end.

Outlook and guidance

• Full-year consolidated forecasts remain unchanged: net sales ¥450 billion (+5%), operating income ¥45 billion (+14%), net income ¥28.3 billion (+6%).

• Net income per share forecast at ¥199.88, reflecting the impact of a share buyback.

• Dividend per share for FY2025 forecast at ¥80.00, up from ¥60.00 in FY2024.

• No changes to previously announced forecasts.

• Revenue and income are trending slightly above forecasts, but guidance is maintained due to conservative exchange rate assumptions.