Toyo Seikan Group Holdings (5901) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 net sales declined 2.3% year-over-year to ¥229.8 billion, mainly due to weak engineering operations in North America.

• Operating income for Q1 FY2024 was ¥13.4 billion, up 78.8% year-over-year, driven by cost pass-through in packaging and recovery in functional materials.

• Profit attributable to owners of parent increased 33.9% year-over-year to ¥11.3 billion.

• Comprehensive income for Q1 FY2024 increased 36.2% to ¥19,294 million.

• Operating income margin improved from 3.2% to 5.9% year-over-year.

Financial highlights

• Ordinary income for Q1 FY2024 was ¥16.4 billion, up 39.0% year-over-year.

• EBITDA for the full year is forecast at ¥90.0 billion, down ¥3.0 billion from the previous estimate.

• Profit per share for Q1 FY2024 was ¥65.23, up from ¥46.56 in Q1 FY2023.

• Total assets as of June 30, 2024, were ¥1,189,524 million, with net assets at ¥701,379 million.

• Equity ratio improved to 56.9% from 56.4% at the previous fiscal year-end.

Outlook and guidance

• H1 FY2024 net sales forecast raised to ¥465.0 billion (+1.1% vs. May), operating income to ¥20.0 billion (+37.9%).

• Full-year FY2024 net sales forecast is ¥920.0 billion, a 3.2% decrease year-over-year.

• Full-year operating income forecast is ¥33.0 billion, down 2.5% year-over-year.

• Profit attributable to owners of parent is forecast at ¥27.5 billion, up 19.1% year-over-year.

• Dividend forecast for FY2024 is ¥91.00 per share, up from ¥90.00 in FY2023.