Nishikawa Rubber (5161) investor relations material

Executive summary

• Achieved year-over-year increases in both revenue and profits for the first quarter, with progress in line with full-year forecasts.

• Revenue for Q1 FY2027 was ¥30,098 million, up 4.0% year-over-year, driven by increased orders in Japan and yen depreciation, despite production cuts in Mexico and China.

• Operating profit rose 25.0% to ¥2,197 million, and ordinary profit increased 38.5% to ¥2,850 million, reflecting ongoing cost improvements and favorable forex.

• Net income attributable to shareholders was ¥1,937 million, up 32.7% year-over-year.

• The company continues to execute its 2030 Global Mid-Term Management Plan, focusing on strengthening profitability and capital efficiency.

Financial highlights

• Revenue rose 4.0% year-over-year to ¥30.1 billion, marking the first increase in two periods.

• Gross profit increased to ¥5,841 million from ¥5,146 million year-over-year.

• Operating margin improved from 6.1% to 7.3% year-over-year due to cost rationalization and price revisions.

• Comprehensive income for the quarter was ¥2,771 million, a significant increase from ¥522 million a year earlier.

• EPS for Q1 was ¥53.44, up from ¥37.81 in the prior year.

Outlook and guidance

• Despite strong Q1 results, full-year earnings and dividend forecasts remain unchanged due to ongoing uncertainty from Middle East geopolitical risks.

• Full-year revenue forecast is ¥118 billion, down 3.4% from the previous year; operating profit forecast is ¥7.5 billion, down 17.1%.

• Full-year net income forecast is ¥6,500 million, up 40.7% year-over-year.

• Annual dividend forecast is ¥184 per share.