DKK Co (6706) Q1 2025 earnings summary

Executive summary

• Net sales rose 6.9% year-over-year to ¥5,956 million for the quarter ended June 30, 2024, with orders received up 11.9% to ¥7,294 million.

• Operating loss narrowed to ¥319 million from ¥693 million a year earlier; net loss attributable to shareholders improved to ¥218 million from ¥470 million.

• Demand in the telecommunications and radio frequency segments showed recovery, especially in disaster prevention and automotive-related fields.

Financial highlights

• Gross profit increased to ¥1,118 million from ¥690 million year-over-year.

• Total assets decreased to ¥53,935 million from ¥55,237 million at the previous fiscal year-end.

• Net assets declined to ¥38,095 million, mainly due to lower retained earnings and increased treasury stock.

• Equity ratio improved slightly to 69.1% from 68.6% at the previous fiscal year-end.

• Net income per share was negative ¥22.78, an improvement from negative ¥45.81 year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to ¥33,000 million, up 14.3% year-over-year.

• Operating income projected at ¥500 million, ordinary income at ¥600 million, and net income attributable to shareholders at ¥400 million for the fiscal year ending March 31, 2025.

• Interim (second quarter) forecast expects net sales of ¥13,800 million and a net loss of ¥300 million.

• Dividend forecast maintained at ¥60 per share for the full year.