Elecom Co (6750) Q1 2026 earnings summary

Executive summary

• Net sales increased 3.7% year-over-year to ¥28,636 million, driven by growth in power supplies, I/O devices, beauty appliances, and B2B solutions, despite declines in peripheral devices and accessories.

• Operating profit rose 18.8% year-over-year to ¥3,011 million, with improved profit margins and higher gross profit, offsetting increased SG&A expenses.

• Ordinary profit and net profit attributable to owners of parent grew 20.1% and 22.2% year-over-year, respectively.

• Gross profit margin improved due to higher sales, new high value-added products, price revisions, and cost reductions.

Financial highlights

• Gross profit increased 7.8% year-over-year to ¥11,621 million, with gross margin improving from 39.0% to 40.6%.

• SG&A expenses rose 4.5% year-over-year, mainly due to higher promotional, advertising, and personnel costs.

• Operating profit margin improved from 9.2% to 10.5% year-over-year.

• Basic earnings per share was ¥24.65, up from ¥18.85 year-over-year.

• Comprehensive income fell sharply to ¥496 million (down 86.6% YoY) due to negative other comprehensive income items.

Outlook and guidance

• Full-year net sales forecast is ¥130,000 million, with operating profit projected at ¥14,900 million and net profit at ¥10,150 million.

• Dividend per share planned at ¥52, marking the 16th consecutive annual increase, with a payout ratio target of 30% or above.

• Strategic focus on expanding B2C and B2B businesses, digital transformation, and overseas market initiatives.