W-SCOPE (6619) Q1 2025 earnings summary

Executive summary

• FY25 Q1 sales reached ¥14.47 billion, up 125.6% year-over-year, with strong automotive battery performance and a slight decline in consumer batteries sales.

• Operating profit for FY25 Q1 was ¥554 million, recovering from a loss of ¥701 million in FY24 Q1, though below the half-year forecast progress rate.

• Ordinary profit rose to ¥1.12 billion, with favorable FX impacts and lower-than-expected interest expenses.

• Net profit attributable to parent shareholders surged 217.5% year-over-year to ¥722 million, with EPS at ¥13.15 compared to ¥6.02 in the prior year.

• Comprehensive income for Q1 FY2025 was ¥4,977 million.

Financial highlights

• Sales increased 125.6% year-over-year to ¥14.47 billion in FY25 Q1.

• Operating profit margin dropped to 3.8% from 10.9% in the prior year.

• EBITDA for FY25 Q1 was ¥2.61 billion, up 85.1% year-over-year.

• CAPEX rose sharply to ¥19.15 billion, reflecting ongoing expansion.

• Total assets increased to ¥186,364 million from ¥171,000 million at the end of the previous fiscal year.

Outlook and guidance

• FY2025 full-year sales guidance is ¥50 billion with operating profit of ¥4 billion (8.0% OPM).

• H1 and H2 sales and OP are expected to be ¥23 billion/¥1.4 billion and ¥27 billion/¥2.6 billion, respectively.

• Guidance unchanged due to ongoing uncertainties, including high freight costs and FX volatility.

• No dividend is planned for the fiscal year.

• Net income forecast at ¥500 million, up 46.8% year-over-year.