GS Yuasa (6674) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 5.8% year-over-year to ¥127.6 billion, driven by higher automotive battery sales and price revisions.

• Operating income increased 27.9% to ¥6.2 billion; ordinary income rose 35.5% to ¥6.7 billion.

• Net profit attributable to owners of parent surged 190.1% to ¥4.8 billion, mainly due to lower tax expense from reversal of deferred tax liabilities at overseas subsidiaries.

• Growth was supported by improved equity in earnings of affiliates, lower income taxes, and reduced noncontrolling interests.

• Comprehensive income grew 21.3% year-over-year to ¥13.1 billion.

Financial highlights

• Basic EPS for Q1 FY2025 was ¥47.71, up 132.6% year-over-year.

• Operating income before goodwill amortization increased 28.6% to ¥6.4 billion.

• Gross profit improved to ¥28.4 billion, with operating margin rising to 4.8%.

• Total assets increased to ¥665.5 billion; net assets rose to ¥379.7 billion, equity ratio at 50.0%.

• Extraordinary losses decreased by ¥0.6 billion, while income taxes fell by ¥0.7 billion.

Outlook and guidance

• Full-year net sales forecast maintained at ¥590.0 billion, with operating income projected at ¥44.0 billion (7.5% margin).

• Profit attributable to owners of parent forecast at ¥26.0 billion, down 18.9% year-over-year.

• No significant revisions to the earnings forecast despite market changes; profit expected to decline year-over-year due to higher base in FY2023.

• Dividend forecast unchanged at ¥70 per share for the full year.

• Segment outlooks: strong replacement battery sales in Japan, robust overseas demand, stable industrial battery sales, recovery expected in automotive lithium-ion batteries, and continued price hikes for submarine batteries.