Japan Display (6740) Q1 2025 earnings summary

Executive summary

• Achieved rapid progress in eLEAP OLED technology, targeting mass production by December 2024, positioning for transformational growth.

• OLED and automotive demand drove sales growth, with OLED business up 41% year-on-year.

• Sales increased 6% year-on-year to JPY 55.9 billion, with core business revenue up 11%.

• Operating losses halved year-on-year, driven by improved product mix, cost reductions, and tighter inventory management; EBITDA improved by 51%, operating profit by 49%, and net income by 53%.

• Strategic shift from non-core LCD smartphone business to higher-margin core businesses and next-generation proprietary technologies.

Financial highlights

• EBITDA loss reduced to JPY 6 billion; operating loss at JPY 7 billion, both halved year-on-year.

• Net loss at JPY 6.5 billion, including a JPY 1.7 billion extraordinary gain from a fab sale.

• Free cash flow improved from -JPY 16.7 billion to -JPY 2 billion year-on-year.

• Cash and deposits increased to JPY 33.9 billion; total assets decreased to JPY 212 billion.

• EPS (basic) improved to -1.05 from -1.98 year-on-year.

Outlook and guidance

• FY2025 revenue forecast maintained at JPY 221.8 billion, down 7.3% year-on-year.

• Full-year EBITDA loss projected at JPY 11.7 billion; operating loss at JPY 8.2 billion.

• Targeting EBITDA profitability in the second half of FY2025.

• FX assumption for FY25 is USD/JPY = 145.