Chori (8014) Q1 2025 earnings summary

Executive summary

• Achieved record highs in ordinary profit (¥4.9B), profit before income taxes (¥5.6B), and net profit attributable to owners of parent (¥4.2B) for Q1 FY03/2025, progressing in line with the medium-term management plan.

• Net sales rose 1.6% year-over-year to ¥76,974 million for the quarter ended June 30, 2024.

• Operating profit declined 8.2% year-over-year to ¥3,616 million, while net profit attributable to owners of parent surged 87.6% to ¥4,157 million.

• All business segments reported increased profit year-over-year.

• Business transformation project (SAP implementation) advanced to testing phase in July, targeting full-scale operation from FY2025.

Financial highlights

• Net sales rose to ¥77.0B (+1.6% YoY); gross profit increased to ¥9.9B (+2.3% YoY).

• Operating profit declined to ¥3.6B (-8.2% YoY) due to higher SG&A expenses, but ordinary profit surged to ¥4.9B (+34.6% YoY) and net profit nearly doubled to ¥4.2B (+87.6% YoY).

• Profit before income taxes jumped to ¥5.6B (+56.1% YoY), driven by gains on sale of investment securities and improved FX gains.

• Comprehensive income for the quarter was ¥5,262 million, up 46.7% year-over-year.

• Basic earnings per share rose to ¥168.71 from ¥90.06 in the prior year period.

Outlook and guidance

• FY03/2025 forecast anticipates record-high segment profit and net profit attributable to owners of parent of ¥10B.

• Q1 progress rates: 24.1% of full-year net sales, 41.6% of full-year net profit target.

• Full-year forecast (ending March 31, 2025): net sales ¥320,000 million (+4.0% YoY), operating profit ¥15,000 million (–0.3% YoY), ordinary profit ¥15,000 million (+3.6% YoY), net profit attributable to owners of parent ¥10,000 million (+2.1% YoY), basic EPS ¥405.82.

• No changes to previously announced forecasts; actual results may vary due to external factors.