Asahi Yukizai (4216) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were 20.2 billion yen, down 3.8% year-over-year, with operating profit at 2.8 billion yen, down 31.2%, and profit attributable to owners of parent at 1.8 billion yen, down 34.5%.

• The business environment saw moderate domestic recovery but was challenged by rising raw material costs and volatile exchange rates.

• Segment performance varied, with declines in core piping systems and growth in resin and water/resource development segments.

Financial highlights

• Gross profit for Q1 FY2025 was 8,144 million yen, down from 8,949 million yen year-over-year.

• Operating profit dropped from 4.1 billion yen to 2.8 billion yen, and ordinary profit declined from 4.4 billion yen to 3.0 billion yen.

• EPS for the quarter was 95.35 yen, compared to 144.31 yen in the prior year.

• Total assets at quarter-end were 100,902 million yen, with net assets of 73,976 million yen and an equity ratio of 72.5%.

Outlook and guidance

• Full-year FY2024/FY2025 revenue forecast remains at 87.0 billion yen, with operating profit at 12.0 billion yen.

• Net income forecast for the year is 8.5 billion yen (+25.3% YoY).

• Dividend per share forecast increased to 110 yen.

• Company expects a decrease in sales and profit company-wide, with Valve & Piping Systems segment declining and Resin/Water Treatment segments increasing.