Asahi Intecc (7747) Q1 2025 earnings summary

Executive summary

• Revenue/net sales rose 8.6% year-over-year to ¥31,184 million, driven by strong Medical Division performance and favorable exchange rates.

• Operating income/profit increased 20.9% year-over-year to ¥9,726 million, with improved margins despite higher SG&A and R&D expenses.

• Net income attributable to parent company shareholders grew 11.7% year-over-year to ¥6,784 million, aided by a reversal of allowance for doubtful accounts.

• Comprehensive income declined 62.9% year-over-year to ¥2,560 million, mainly due to a decrease in foreign currency translation adjustments.

Financial highlights

• Gross profit reached ¥21,529 million, up 15.6% year-over-year, with gross margin improving to 69.0%.

• EBITDA increased 18.9% year-over-year to ¥12,374 million.

• EPS rose to ¥24.98, up 11.7% from the previous year.

• Ordinary income was ¥8,767 million, up 7.3% year-over-year, despite higher non-operating expenses from foreign exchange losses.

• Total assets decreased to ¥179,238 million as of September 30, 2024, down ¥12,375 million from June 30, 2024.

Outlook and guidance

• Full-year net sales forecast at ¥116,737 million, up 8.5% year-on-year; operating profit forecast at ¥25,210 million, up 13.9%.

• Profit attributable to owners of parent projected at ¥18,803 million, up 18.9% year-on-year; EPS forecast at ¥69.22.

• Despite favorable Q1 results, the company maintains its previous full-year forecast due to external uncertainties including currency movements and market trends.