Sanoh Industrial (6584) investor relations material

Executive summary

• Net sales rose 6.3% year-over-year to ¥42,780 million, driven by growth in the Americas, tariff pass-through, and favorable FX effects, offsetting declines in Japan and China.

• Operating income fell 58.3% year-over-year to ¥938 million due to higher launch costs in the Americas, adverse FX impacts, incomplete tariff cost recovery, and one-time expenses in Europe.

• Net income attributable to shareholders dropped 98.8% year-over-year to ¥8 million, mainly reflecting lower ordinary income and increased costs.

Financial highlights

• Gross profit decreased to ¥5,815 million from ¥7,012 million year-over-year.

• Operating income margin declined to 2.2% from 5.6% year-over-year.

• Ordinary income decreased 59.7% year-over-year to ¥763 million, despite FX gains.

• Cash and cash equivalents at quarter-end were ¥23,378 million, down from ¥24,519 million at the previous year-end.

• Earnings per share dropped to ¥0.23 from ¥19.48 year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥167,000 million, with Q1 progress at 25.6%.

• Full-year operating income forecast is ¥5,500 million (17.0% progress in Q1).

• Full-year net income forecast is ¥1,500 million (0.5% progress in Q1); EPS forecast is ¥41.89.

• No changes to dividend forecast; annual dividend expected at ¥28 per share.