Artience (4634) Q1 2025 earnings summary

Executive summary

• Net sales rose 0.5% year-over-year to 82.1 billion yen in Q1 FY2025, with operating profit up 2.9%, driven by overseas growth in gravure inks, adhesives, and UV inks, and cost reductions and price revisions in Japan.

• Ordinary profit declined 15.6% to 4.2 billion yen, and profit attributable to owners of parent dropped 28.0% to 2.9 billion yen, mainly due to the absence of previous year's forex gains and a higher tax burden.

• Comprehensive income turned negative at -6.36 billion yen, impacted by valuation and currency translation losses.

• Share buyback (up to 10 billion yen or 4.5 million shares) and share cancellation (3 million shares, 5.63% of total shares) were announced.

Financial highlights

• Net sales reached 82.1 billion yen (+0.5% YoY), operating profit 4.5 billion yen (+2.9% YoY), ordinary profit 4.2 billion yen (-15.6% YoY), and profit attributable to owners of parent 2.9 billion yen (-28.0% YoY).

• Operating margin improved to 5.5% from 5.3% YoY.

• EPS (basic) was 58.50 yen, down from 77.23 yen in the prior year.

• Overseas sales ratio was 54.5%.

• Net assets fell to 263.1 billion yen, with net worth/total assets ratio at 57.0%.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales 370.0 billion yen (+5.4% YoY), operating profit 22.0 billion yen (+7.8%), profit attributable to owners of parent 17.5 billion yen (-5.6%), and EPS 348.38 yen.

• No change to the full-year forecast announced in February 2025.

• Dividend forecast unchanged at 100 yen per share for the year.

• Growth business expansion expected in India and Southeast Asia; continued cost cuts and price revisions in Japan to offset raw material and cost increases.

• U.S. tariffs expected to have minor direct impact, but market and currency trends remain a concern.