TOKAI (9729) Q1 2025 earnings summary

Executive summary

• Achieved record consolidated net sales of ¥138,222 million, up 6.2% year-over-year, with growth in all segments.

• Operating profit rose 2.9% to ¥8,082 million, driven by price revisions and integration effects despite higher costs.

• Ordinary profit increased 5.3% to ¥8,505 million, while profit attributable to owners of parent declined 4.8% to ¥5,810 million.

• Net sales for Q1 FY2025 rose 5.1% year-over-year to ¥35,215 million, with profit attributable to owners of parent up 38.7% to ¥1,717 million.

• Operating profit for Q1 FY2025 was ¥1,611 million, nearly flat year-over-year, while ordinary profit increased 4.0% to ¥1,825 million.

Financial highlights

• Net sales: ¥138,222 million (+6.2% YoY); operating profit: ¥8,082 million (+2.9% YoY); ordinary profit: ¥8,505 million (+5.3% YoY).

• Profit attributable to owners of parent: ¥5,810 million (-4.8% YoY); Q1 FY2025: ¥1,717 million (+38.7% YoY).

• Equity ratio improved to 75.0% from 73.7% year-over-year; capital adequacy ratio at 74.8% as of June 30, 2024.

• Cash and cash equivalents at period end: ¥30,407 million, down ¥5,133 million from previous year; Q1 FY2025: ¥28,899 million.

• Capital investments increased 43.0% to ¥9,257 million, mainly for plant construction and system upgrades.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥142,925 million, up 3.4% year-over-year.

• Operating profit projected at ¥7,695 million (down 4.8%), ordinary profit at ¥8,195 million (down 3.6%), and profit attributable to owners of parent at ¥5,578 million (down 4.0%).

• Annual dividend forecast maintained at ¥58.00 per share, with a ¥29.00 interim dividend.

• Cautions that forecasts are based on current information and subject to risks and uncertainties.