Glory (6457) Q1 2025 earnings summary

Executive summary

• Q1 consolidated sales were ¥72.3 billion, down 22.0% year-over-year, reflecting a high comparison base from last year's new banknote-related demand and large orders.

• Operating income fell 81.5% to ¥2.0 billion, and net income attributable to owners dropped 95.0% to ¥0.3 billion.

• Overseas sales remained steady, especially in the Americas, while domestic sales and income declined due to the rebound from last year’s new banknote issuance.

• Net sales exceeded those for FY2023, prior to the surge from new banknote demand.

• The company launched the "2026 Medium-Term Management Plan" focusing on digital transformation and operational efficiency.

Financial highlights

• Q1 EBITDA was ¥7.9 billion, down 53.5% year-over-year.

• Gross profit for Q1 was ¥33,781 million, with a gross margin of 46.7%.

• Comprehensive income was negative ¥1,223 million, compared to ¥12,602 million in the prior year.

• Full-year sales forecast is ¥340.0 billion, with operating income of ¥21.5 billion (Japanese GAAP) and ¥28.5 billion (IFRS).

• Net income attributable to owners was ¥0.3 billion, a 95.0% decrease year-over-year.

Outlook and guidance

• Full-year forecast maintained, expecting sales of ¥340.0 billion and operating income of ¥21.5 billion.

• Profitability recovery in overseas markets anticipated from the second half of the fiscal year.

• Interim forecast revised downward due to overseas trade policy impacts and domestic rebound effects.

• Dividend forecast for the year is ¥112.00 per share, up from ¥108.00 in the previous year.

• IFRS will be applied from FY2026.