Dowa Holdings (5714) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 net sales were ¥188.9B, down 1% year-over-year, while operating income rose 60% to ¥11.7B and ordinary income increased 13% to ¥14.2B.

• Profit attributable to owners of parent grew 50% year-over-year to ¥11.7B in Q1.

• Comprehensive income for the quarter was ¥16.0B, a 6% decrease year-over-year.

• Full-year forecasts for FY2024 remain unchanged, projecting net sales of ¥747.0B and operating income of ¥30.5B.

Financial highlights

• Q1 operating income margin improved to 6.2% from 3.8% year-over-year.

• Ordinary income margin for Q1 was 7.5%, up from 6.6% in the prior year.

• Gross profit increased to ¥25.3B from ¥19.7B year-over-year.

• Basic earnings per share for Q1 FY2024 was ¥197.89, up from ¥131.95 in the prior year.

• Total assets rose to ¥664.8B as of June 30, 2024, from ¥632.8B at March 31, 2024.

Outlook and guidance

• FY2024 full-year guidance: net sales ¥747.0B, operating income ¥30.5B, ordinary income ¥40.0B, profit attributable to owners of parent ¥27.0B.

• Full-year basic EPS forecasted at ¥453.51.

• Segment forecasts unchanged: Environmental Management & Recycling expected to grow, Nonferrous Metals to decline.

• Sensitivity: ¥490M impact on operating income per ¥1/$ exchange rate change.