Shimadzu (7701) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 sales for the fourth consecutive year, reaching 116.9 bn yen, up 7.1% year-over-year, driven by overseas growth and a weaker yen, but operating income declined 17% due to increased investments and weak China demand.

• Net income was 10.0 bn yen, down 10% year-over-year, with an operating margin of 9.4%.

• Overseas net sales exceeded 70 bn yen for the first time, with notable growth in North America and Europe.

• Strategic acquisitions and organizational restructuring supported recurring business and customer solutions.

Financial highlights

• Net sales rose 7.1% year-over-year to 116.9 bn yen; operating income fell 17% to 11.0 bn yen; net income dropped 10% to 10.0 bn yen.

• Gross profit increased to 50.1 bn yen; basic earnings per share was 33.89 yen, down from 37.67 yen.

• R&D expenses increased by 1.9 bn yen to 6.8 bn yen; CAPEX decreased by 1.5 bn yen to 4.2 bn yen.

• Depreciation and amortization rose slightly to 4.8 bn yen.

• Total assets stood at 664.9 bn yen, with net assets at 499.9 bn yen and an equity-to-asset ratio of 75.2%.

Outlook and guidance

• FY2024 guidance unchanged: net sales forecast at 525.0 bn yen (+3% YoY), operating income at 76.0 bn yen (+4% YoY), net income at 58.0 bn yen.

• Operating margin expected at 14.5%; R&D and CAPEX both forecast at 28.0 bn yen.

• Annual dividend forecast raised to 62.00 yen per share.

• Market outlook remains uncertain due to geopolitical risks, inflation, and FX volatility; focus on growth in Healthcare, Green, Material, and Industry sectors.