Daiichi Kigenso Kagaku Kogyo (4082) Q1 2025 earnings summary

Executive summary

• Net sales/revenue for Q1 FY2025 rose 1.3% year-over-year to ¥8,431 million, with sales volume up 2.8%.

• Operating profit surged 73.2% year-over-year to ¥758 million, driven by higher sales volume, improved inventory cost structure, and favorable yen depreciation.

• Profit attributable to owners/net income was ¥403 million, down 30.7% year-over-year, as the prior year included a one-time impairment loss.

• Ordinary profit declined 44.2% year-over-year to ¥817 million due to non-operating losses and lower foreign exchange gains.

Financial highlights

• Gross profit increased 25.8% year-over-year to ¥2,163 million, with gross margin rising to 25.7% from 20.7%.

• Operating profit before depreciation rose 53.0% to ¥1,636 million.

• EPS for Q1 was ¥16.56, compared to ¥23.94 in the prior year.

• Total assets at quarter-end were ¥65,647 million, with net assets of ¥36,532 million and an equity ratio of 54.74%.

• Depreciation expense for Q1 was ¥877 million, up from ¥631 million last year.

Outlook and guidance

• FY3/2025 full-year net sales/revenue forecast is ¥38,000 million, with 1Q progress at 22.2%.

• Operating profit forecast is ¥3,000 million (25.3% progress), ordinary profit ¥2,200 million (37.2%), and profit attributable to owners/net income ¥1,200 million (33.6%).

• No changes to previously announced guidance due to ongoing demand and forex uncertainties.