Daiseki (9793) investor relations material

Executive summary

• Achieved record-high consolidated net sales and profits for the first quarter, with net sales of ¥18,275 million (up 2.0% year-on-year) and profit attributable to owners of parent of ¥2,871 million (up 17.6% year-on-year), despite some segments falling short of forecasts due to external disruptions.

• Industrial waste treatment business drove growth, offsetting higher raw material and labor costs, while Daiseki and Daiseki Eco.Solution exceeded expectations and System Kikou underperformed due to project delays.

• Soil remediation business saw decreased sales but higher operating profit due to high value-added projects.

• ESG initiatives advanced, with reduced CO2 emissions and increased board diversity.

• Lead recycling business posted slightly higher operating profit despite rising costs.

Financial highlights

• Consolidated net sales rose 2.0% year-over-year to ¥18,275 million; operating profit increased 8.3% to ¥4,151 million.

• Net income attributable to owners of parent grew 17.6% year-over-year to ¥2,871 million; comprehensive income was ¥3,063 million (up 16.6%).

• Ordinary profit reached ¥4,267 million (up 8.9% year-over-year).

• Gross profit margin improved to 34.9%; operating profit margin held steady at 22.7%.

• Daiseki (non-consolidated) posted a 4.4% increase in net sales and an 8.8% rise in operating profit year-over-year.

Outlook and guidance

• Full-year consolidated net sales forecast at ¥74,200 million, with operating profit projected at ¥17,000 million; profit attributable to owners of parent forecast at ¥11,200 million (up 22.3%).

• Dividend forecast for FY27: annual ¥86.00 per share (up from ¥76.00 previous year).

• System Kikou aims to recover from 2Q onward by executing delayed projects and securing new contracts.

• Daiseki Eco.Solution expects to secure PFAS-related projects in upcoming quarters.

• No revisions to previously announced forecasts.