Zuken (6947) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 reached ¥9,017 million, up 6.8% year-over-year, marking a record high for the first quarter, driven by strong sales of E3.series in Europe and robust DS series sales in Japan and Western markets.

• Operating income rose 10.5% to ¥856 million, ordinary income increased 7.1% to ¥1,124 million, and net income attributable to shareholders grew 2.3% to ¥703 million, all setting new Q1 records.

• Economic conditions remained uncertain due to global inflation and concerns over the Chinese economy, but gradual recovery continued, with steady capital and IT investment in key customer industries.

Financial highlights

• Gross profit for Q1 FY2025 was ¥6,380 million, with a gross margin of 70.7%, up from ¥5,801 million and 68.8% in the prior year.

• Total assets at quarter-end were ¥64,470 million, up ¥591 million from the previous fiscal year-end.

• Equity ratio stood at 63.0%, with net assets of ¥41,173 million.

• Cash and deposits increased to ¥8,324 million, while accounts receivable decreased by ¥1,800 million.

Outlook and guidance

• Full-year guidance remains unchanged: revenue of ¥41,000 million (+6.6% YoY), operating income of ¥5,500 million (+14.7%), ordinary income of ¥5,900 million, and net income of ¥4,000 million (+3.4%).

• Sales and profits are expected to be concentrated in Q4 due to customer fiscal year-end purchasing patterns.