Elecom Co (6750) Q1 2025 earnings summary

Executive summary

• Net sales increased 5.4% year-over-year to ¥27,606 million, driven by strong performance in home appliances, mobile batteries, AC chargers, mice, keyboards, and beauty appliances following an M&A deal.

• Operating profit declined 25.2% year-over-year to ¥2,535 million due to higher SG&A expenses, including personnel, promotion, and M&A-related costs.

• Profit attributable to owners of the parent dropped 38.5% year-over-year to ¥1,540 million, impacted by lower operating profit and foreign exchange losses.

• Gross profit rose 2.4% year-over-year to ¥10,776 million, supported by price revisions and cost reductions despite yen depreciation.

• Comprehensive income fell 38.9% year-over-year to ¥3,712 million.

Financial highlights

• Net sales: ¥27,606 million (+5.4% YoY); Operating profit: ¥2,535 million (−25.2% YoY); Ordinary profit: ¥2,275 million (−37.4% YoY); Profit attributable to owners of parent: ¥1,540 million (−38.5% YoY).

• Gross margin decreased by 1.1 percentage points to 39.0%, despite ongoing price revisions and cost reductions.

• Earnings per share for the quarter: ¥18.85, down from ¥29.68 in the prior year.

• Cash and cash equivalents at quarter-end: ¥33,714 million, down ¥7,769 million from the previous fiscal year-end.

• SG&A expenses increased 15.6% year-over-year, mainly from higher personnel and administrative costs due to M&A and business expansion.

Outlook and guidance

• Full-year net sales forecast is ¥120,000 million, with operating profit projected at ¥13,400 million and profit attributable to owners at ¥9,650 million.

• Dividend per share planned at ¥48, marking the 15th consecutive annual increase, with a payout ratio target of 30% or above.

• No changes to previously announced earnings forecasts.

• The company is focused on accelerating strategic product development and leveraging its Shenzhen Technical Center to drive future growth.