Toagosei (4045) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2025 rose 2.1% year-over-year to ¥39,822 million, while operating income declined 5.3% to ¥3,363 million and net income attributable to owners fell 26.4% to ¥2,000 million.

• Comprehensive income dropped sharply to ¥499 million from ¥7,414 million a year earlier, reflecting significant declines in other comprehensive income.

• Net income per share decreased 23.7% year-over-year to ¥18.01.

• The number of consolidated subsidiaries increased by one, with Toagosei Vietnam Co., Ltd. added from 2Q 2024.

• The company focused on sales expansion, cost reductions, and investments in manufacturing, R&D, and overseas bases amid mixed global economic conditions.

Financial highlights

• Gross profit increased to ¥11,113 million from ¥10,805 million year-over-year.

• Ordinary profit dropped 20.7% year-over-year to ¥3,193 million.

• Operating income margin decreased from 9.1% to 8.4% year-over-year.

• Non-operating income/expenses worsened, with a swing from ¥475 million to a loss of ¥170 million, mainly due to foreign currency exchange losses and lower interest/dividend income.

• Net worth ratio improved to 78.0% from 76.5% at the previous fiscal year-end.

Outlook and guidance

• Fiscal 2025 full-year forecast remains unchanged: net sales ¥165,000 million (down 1.5% YOY), operating income ¥15,000 million (up 5.4%), net income attributable to owners of parent ¥13,000 million (up 9.5%).

• Dividend forecast raised to ¥65.00 per share for fiscal 2025, up from ¥60.00 in fiscal 2024.

• The company is closely monitoring the impact of U.S. tariff policies and will update guidance if necessary.

• No explicit forward-looking guidance provided for the quarter, but segment commentary suggests mixed demand trends and ongoing cost pressures.