Yodoko (5451) Q1 2027 earnings summary

Executive summary

• Net sales for 1Q FY3/27 decreased by 2.4% year-over-year to ¥51.51B, with operating profit down 8.2% to ¥3.85B and ordinary profit down 2.4% to ¥5.00B.

• Profit attributable to owners of parent rose 9.1% year-over-year to ¥3.70B, mainly due to a gain on sale of non-current assets and valuation gains on securities.

• Sales increased in Japan due to higher steel sheet volumes, but overall earnings declined from higher costs, while overseas sales and earnings fell, mainly from lower volumes at SYSCO (Taiwan).

• The Japanese economy showed moderate recovery, but inflation and high raw material costs weighed on consumer spending and earnings.

Financial highlights

• 1Q FY3/27 net sales: ¥51.51B, down 2.4% year-over-year; operating profit: ¥3.85B, down 8.2%; ordinary profit: ¥5.00B, down 2.4%.

• Gross profit for the quarter was ¥9.72B, nearly flat year-over-year.

• Net income per share was ¥25.90, up from ¥23.52 in the prior year, reflecting the share split adjustment.

• Comprehensive income surged to ¥5.08B from ¥1.43B a year earlier, mainly due to valuation gains on securities.

• Total assets decreased to ¥260.94B from ¥266.46B at the previous fiscal year-end; net assets declined to ¥218.54B, mainly due to dividend payments exceeding profit for the period.

Outlook and guidance

• Full-year FY3/27 sales and earnings forecasts revised upward, with net sales forecast at ¥212.00B (up 8.5% year-over-year) and operating profit expected to rise 8.7% to ¥12.90B.

• Profit attributable to owners of parent is projected to decrease 32.2% to ¥11.80B, with EPS of ¥82.37.

• Planned annual dividend of ¥62 per share (¥20 interim, ¥42 year-end), revised down from ¥91.00 in the prior year.

• The business environment is expected to remain challenging due to persistent inflation, high energy costs, and supply chain risks.