Tsubakimoto Chain (6371) Q1 2025 earnings summary

Executive summary

• Net sales rose 7.3% year-over-year to ¥66,455 million in Q1 FY2024, with order acceptance up 2.6%.

• Operating income increased 5.4% to ¥4,089 million, while net income attributable to owners of parent surged 98.1% to ¥6,383 million.

• International sales ratio climbed to 68.3% in Q1 FY2024, with notable growth in the Americas and Europe.

• Orders received increased 2.6% year-over-year to ¥66,486 million, reflecting moderate global economic recovery despite stagnation in China and a flat Japanese economy.

Financial highlights

• Ordinary income grew 10.3% year-over-year to ¥6,058 million in Q1 FY2024.

• Net income per share surged to ¥178.82 from ¥87.24 year-over-year.

• Comprehensive income decreased 19.2% year-over-year to ¥10,899 million.

• Gross profit improved to ¥19,205 million from ¥18,299 million year-over-year.

• Q1 operating income margin was 6.2%, slightly down from 6.3% a year ago.

Outlook and guidance

• Full-year FY2024 net sales forecast is ¥280,000 million, up 4.9% from FY2023.

• Operating income projected to rise 8.2% to ¥23,000 million, with net income expected to increase 18.6% to ¥22,000 million.

• Net income per share forecasted at ¥626.57 for FY2024; post-split, EPS is ¥252.64.

• Dividend forecast for FY2024 is ¥240.00 per share pre-split; post-split, year-end dividend per share is ¥47.

• Main exchange rates revised to 1 USD = 150 JPY and 1 EUR = 160 JPY for FY2024.