USS (4732) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 net sales reached ¥25.64 billion, up 7.1% year-over-year, with operating profit at ¥13.44 billion, up 12.3%, and profit attributable to owners up 14.2%, marking record highs for all key profit metrics.

• Comprehensive income increased to ¥9,324 million from ¥8,208 million year-over-year.

• The FY2024 full-year forecast was revised upward due to strong Q1 results, with net sales now expected at ¥102.6 billion and operating profit at ¥52.5 billion.

• Dividend forecast for FY2024 was raised to ¥41.2, marking the 25th consecutive year of dividend increases and reflecting the 2-for-1 stock split.

Financial highlights

• Gross profit margin improved to 62.4% in Q1 FY2024 from 60.4% in Q1 FY2023, with gross profit at ¥15,997 million.

• Operating margin rose to 52.4% in Q1 FY2024 from 50.0% in Q1 FY2023.

• Net margin for the quarter was 36.1%.

• Equity ratio improved to 73.4% at the end of Q1 FY2024.

• Diluted profit per share was ¥19.22, up from ¥16.61 year-over-year, reflecting the stock split.

Outlook and guidance

• FY2024 net sales forecast revised to ¥102.6 billion, up 5.1% year-over-year; operating profit forecast at ¥52.5 billion, up 7.3% year-over-year; profit attributable to owners forecast at ¥36 billion, up 9.4%.

• Contract completion ratio for auctions expected to reach 66.1% for FY2024, above the previous plan.

• Dividend payout ratio to be maintained at a minimum of 55%, with a total payout ratio of at least 80% through FY2026.