ANEST IWATA (6381) Q1 2025 earnings summary

Executive summary

• Net sales rose 2.5% year-over-year to ¥12,484 million, driven by strong sales in Europe and the Americas, especially in coating equipment, but operating profit declined 19.9% to ¥1,017 million due to increased SG&A expenses and higher labor costs overseas.

• Net income attributable to owners of parent fell 23.5% year-over-year to ¥1,052 million.

• Comprehensive income increased 25.1% year-over-year to ¥2,534 million, driven by foreign currency translation gains.

• The global economy remained uncertain due to inflation and geopolitical risks, with Japan seeing weak capital investment and stagnant business sentiment.

Financial highlights

• Gross profit increased 2.7% year-over-year to ¥5,706 million, with a stable gross margin of 45.7%.

• SG&A expenses rose 9.4% year-over-year, mainly from higher labor costs in Europe, the Americas, and China.

• Ordinary profit decreased 14.8% year-over-year to ¥1,704 million, impacted by lower foreign exchange gains.

• Basic earnings per share dropped to ¥26.52 from ¥34.01 year-over-year.

• Dividend per share for the quarter was ¥27.00, up from ¥22.00 in the prior year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥58,000 million (+8.6%), operating profit ¥6,800 million (+10.1%), net income ¥4,950 million (+0.4%).

• Overseas sales, especially in Europe, the US, and India, are expected to drive growth; moderate recovery anticipated in China.

• Annual dividend forecast is ¥50.00 per share.

• Risks include China's economic slowdown, global monetary policies, currency trends, and geopolitical factors.