Ai Holdings (3076) Q1 2025 earnings summary

Executive summary

• Consolidated net sales for Q1 were ¥11,222 million, down 6.3% year-over-year and 93.7% of the previous year.

• Operating profit for Q1 was ¥1,778 million, 75.6% of the previous year, down 24.4% year-over-year.

• Net profit surged to ¥10,255 million, a 570.1% year-over-year increase, mainly due to a one-time gain from negative goodwill related to the Iwasaki Tsushinki acquisition.

• Ordinary profit fell 55.5% year-over-year to ¥1,198 million.

• Iwasaki Tsushinki became a wholly owned subsidiary on September 1, with its results consolidated from October 1.

Financial highlights

• Operating profit margin for Q1 was 15.9%.

• Net profit margin for Q1 was 91.4%, reflecting the extraordinary gain.

• Earnings per share for the quarter were ¥208.08, compared to ¥37.99 in the same period last year.

• Equity ratio at 74.0% as of September 30, 2024, improved from 85.2% as of June 30, 2024.

• Book value per share increased 13.2% year-over-year to ¥1,925.08.

Outlook and guidance

• Full-year sales forecast is ¥68,000 million, with operating profit of ¥10,500 million and net profit of ¥17,805 million.

• Ordinary profit forecast is ¥11,317 million, up 43.0% year-over-year.

• Full-year earnings per share forecast is ¥340.05.

• Iwasaki Tsushinki’s results will be fully reflected in the consolidated P/L from Q2 onward.