Tokai Rika (6995) Q1 2025 earnings summary

Executive summary

• Achieved record-high first quarter sales, primarily driven by a weak yen, despite practical sales declines in Japan and China compared to the same period last year.

• Net sales for the quarter ended June 30, 2024, rose 2.2% year-over-year to ¥151,966 million.

• Operating profit declined 18.9% year-over-year to ¥7,123 million due to lower selling prices, increased fixed costs, and reduced operations.

• Profit attributable to owners of parent dropped 26.8% year-over-year to ¥7,578 million.

• Comprehensive income decreased 57.8% year-over-year to ¥9,688 million.

Financial highlights

• Consolidated sales rose to ¥152 billion, up 2.2% year-over-year; operating profit fell 18.9% to ¥7 billion.

• Ordinary profit dropped 36.3% to ¥9 billion; profit attributable to owners of parent decreased 26.8% to ¥8 billion.

• Gross profit increased slightly to ¥19,922 million from ¥19,756 million year-over-year.

• Selling, general, and administrative expenses rose by ¥1,826 million year-over-year.

• Basic earnings per share for the quarter were ¥89.59, down from ¥113.28 a year earlier.

Outlook and guidance

• Annual forecast remains unchanged due to uncertainty from exchange rate fluctuations, despite upside from the weak yen and reduced fixed costs.

• FY2025 sales forecast at ¥580 billion, with one source noting a 7.0% decrease and another a 7.0% increase year-over-year.

• Operating profit forecast at ¥23 billion, down 20.2% year-over-year.

• Profit attributable to owners of parent expected to decrease 19.5% year-over-year to ¥20,000 million.

• Annual dividend forecast is ¥70.00 per share.