AINAVO HOLDINGS (7539) Q1 2025 earnings summary

Executive summary

• Revenue increased by 2.7% year-over-year to ¥23,462 million, driven by growth in large-scale tile projects, construction, and the detached housing and large-scale property segments.

• Gross profit margin improved by 0.1 percentage points to 14.6% year-over-year, with gross profit rising 3.8% to ¥3,430 million.

• Operating profit declined by 4.1% to ¥665 million due to higher personnel and SG&A expenses, despite gross profit growth.

• Net income attributable to shareholders decreased by 8.0% year-over-year to ¥439 million.

Financial highlights

• Gross profit rose to ¥3,430 million, up from ¥3,304 million year-over-year.

• SG&A expenses increased by 5.9% year-over-year to ¥2,765 million.

• Operating margin fell to 2.8% from 3.0% year-over-year.

• Ordinary profit decreased by 2.0% to ¥751 million.

• EPS for the quarter was ¥18.98, compared to ¥20.64 in the prior year.

Outlook and guidance

• Full-year revenue forecast is ¥92,700 million, up 3.2% year-over-year.

• Operating profit is projected at ¥2,250 million (+3.6%), ordinary profit at ¥2,550 million (+2.9%), and net income at ¥1,550 million (+22.1%).

• Progress rates for key business targets range from 5.8% to 32.8% for the first quarter, indicating varying momentum across segments.

• No changes have been made to the previously announced earnings guidance.