FP Corporation (7947) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales rose 3.6% YoY to ¥55,131 million; operating profit fell 26.5% to ¥2,190 million, ordinary profit fell 30.8% to ¥2,244 million and parent profit fell 35.3% to ¥1,452 million.

• Product sales volume increased 1.8% YoY, with eco-friendly product volume up 7.8%; higher costs and expenses weighed on profit.

Financial highlights

• Net sales were ¥55,131 million, up 3.6% YoY; gross profit was ¥15,856 million versus ¥15,109 million a year earlier.

• Operating profit was ¥2,190 million, down 26.5%; ordinary profit was ¥2,244 million, down 30.8%; parent profit was ¥1,452 million, down 35.3%.

• Sales of products were ¥41,880 million, down 0.2%; sales of goods were ¥13,251 million, up 17.6% YoY.

• EPS was ¥17.97 versus ¥27.43 YoY; comprehensive income was ¥1,834 million, down 18.0%.

Outlook and guidance

• FY2025 forecasts unchanged: net sales ¥236,000 million, operating profit ¥17,800 million, ordinary profit ¥18,000 million, parent profit ¥12,122 million and EPS ¥149.98.

• H1 forecasts: net sales ¥116,000 million, operating profit ¥6,400 million, ordinary profit ¥6,500 million and parent profit ¥4,361 million; FY ordinary profit outlook is ¥6.5 billion for H1 and ¥11.5 billion for H2.

• Manufactured-product price revisions of 15% or more began for shipments from July 1; effects are expected to emerge gradually in Q2 and be fully reflected in H2.

• FY ordinary-profit bridge includes ¥7.10 billion from sales efforts and ¥0.96 billion from production improvements, offset by ¥4.00 billion from material prices.

• Product volume adjusted for two fewer June business days grew 3% YoY; July volume was ~4% higher YoY.