Yamazen (8051) Q1 2025 earnings summary

Executive summary

• Q1 FY3/25 net sales declined 1.2% year-over-year to ¥118.6 billion, with operating profit down 64.5% to ¥870 million due to lower gross profit and higher SG&A expenses.

• Profit attributable to owners fell 59.1% year-over-year to ¥642 million, reflecting sluggish capital investment and weak durable goods demand.

• Comprehensive income decreased 49.1% to ¥2,901 million for the quarter.

Financial highlights

• Gross profit decreased 3.9% year-over-year to ¥17.8 billion; gross margin fell 0.4ppt to 15.0%.

• Operating profit margin dropped from 2.0% to 0.7% year-over-year.

• Ordinary profit declined 57.3% to ¥1.1 billion.

• Earnings per share were ¥7.24, down from ¥17.66 in the prior year period.

• Equity ratio stood at 45.2% as of June 30, 2024.

Outlook and guidance

• FY3/25 full-year net sales forecast at ¥530 billion (+4.6% YoY), operating profit at ¥12 billion (+21.4% YoY), and profit attributable to owners at ¥7.6 billion (+17.1% YoY).

• Full-year EPS forecasted at ¥85.54.

• Recovery in capital investment demand expected in the second half, supporting improved profitability.

• Production Equipment segment sales planned at ¥347 billion (+5.6% YoY), Consumer Goods at ¥179 billion (+3.5% YoY).