Carlit (4275) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥8,760 million, down 0.7% year-over-year; operating profit fell 26.5% to ¥378 million, and profit attributable to owners of parent declined 27.8% to ¥365 million.

• Declining profit margins were attributed to rising personnel expenses and delays in price adjustments, with additional impacts from the automobile type approval issue and semiconductor market adjustments.

• Comprehensive income for the quarter was ¥945 million, down 11.3% year-over-year.

Financial highlights

• Gross profit for Q1 FY2025 was ¥1,959 million, down from ¥2,083 million year-over-year.

• Basic earnings per share for the quarter was ¥15.49, compared to ¥21.39 in the prior year.

• Total assets increased to ¥55,251 million, and net assets rose to ¥36,930 million, with an equity-to-asset ratio of 66.8%.

• Cash and deposits decreased by ¥759 million from the previous fiscal year-end.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales ¥38,000 million (+3.9% YoY), operating profit ¥3,800 million (+13.4%), profit attributable to owners of parent ¥2,800 million (+7.7%), EPS ¥118.42.

• Recovery in Chemicals and Material assessment service expected; Electronic materials on a recovery trend, but Silicon wafers recovery delayed until H2 2024.

• Bottling business expected to benefit from increased beverage consumption due to heat waves.