AOI Electronics (6832) Q1 2025 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2024, rose 2.9% year-over-year to ¥8,566 million, with operating profit of ¥361 million versus a loss of ¥431 million a year earlier, driven by lower depreciation after prior-year impairments and despite higher raw material costs.

• Ordinary profit reached ¥436 million, reversing a ¥323 million loss, aided by foreign exchange gains; profit attributable to owners of parent was ¥416 million, compared to a ¥369 million loss in the prior year.

• Integrated circuits sales increased 2.0% year-over-year to ¥7,528 million, while functional components sales rose 9.3% to ¥1,034 million, reflecting improved orders and inventory adjustments.

Financial highlights

• Gross profit for the quarter was ¥1,433.9 million, up from ¥590.4 million year-over-year; gross margin improved significantly.

• Basic earnings per share for the quarter were ¥37.22, compared to a loss per share of ¥30.79 a year ago.

• Comprehensive income for the quarter was ¥425 million, up from a loss of ¥307 million in the prior year.

• Total assets as of June 30, 2024, were ¥50,948 million, up ¥814 million from March 31, 2024.

• Net assets increased to ¥43,261 million, with an equity-to-asset ratio of 84.9%.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2025, remains unchanged: net sales of ¥36,500 million (+4.2% year-over-year), operating profit of ¥1,050 million (+7.5%), and profit attributable to owners of parent of ¥720 million.

• Basic earnings per share for the full year are projected at ¥64.29.

• No revisions to dividend forecast; annual dividend per share expected to be ¥54.00.

• Management is monitoring global economic and market trends for potential forecast adjustments.