KOA Corporation (6999) investor relations material

Executive summary

• Net sales rose 12.7% year-over-year to ¥72.3 billion, driven by demand recovery and a weaker yen.

• Operating profit surged 210% to ¥3.7 billion, and ordinary profit increased 320% to ¥5.2 billion, aided by gains on material scrap and subsidies.

• Profit attributable to owners of parent increased by ¥3.7 billion year-over-year, reaching ¥4.0 billion, supported by a gain on sale of investment securities.

• Comprehensive income reached ¥11,562 million, a 751.6% increase year-over-year.

Financial highlights

• FY03/26 Q4 net sales were ¥19.2 billion, up 17.3% year-over-year and 4.0% sequentially.

• Operating profit for Q4 was ¥0.5 billion, down 69.8% sequentially.

• Gross profit improved to ¥21,872 million from ¥18,155 million year-over-year.

• Cash and cash equivalents at year-end increased to ¥27,410 million, up ¥2,610 million from the prior year.

• Net assets rose to ¥88,577 million, with an equity ratio of 58.4%.

Outlook and guidance

• Net sales forecast for FY03/27 is ¥75.1 billion, with operating profit projected at ¥3.3 billion and an operating margin of 4.4%.

• FY2027 net sales forecast at ¥77,400 million, up 7.1% year-over-year.

• Operating profit expected at ¥2,830 million, ordinary profit at ¥3,300 million, and profit attributable to owners of parent at ¥4,780 million.

• Caution noted regarding potential demand slowdown and inflationary pressures due to geopolitical risks.