JK Holdings (9896) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥92,908 million, a 1.9% decrease year-over-year, with operating profit at ¥1,375 million (down 19.2%), recurring profit at ¥1,534 million (down 17.7%), and net income attributable to shareholders at ¥771 million (down 17.8%).

• Both revenue and profit remain above pre-wood shock levels, but declines were driven by continued losses in the plywood and wood processing segment.

• The housing industry faced rising material, logistics, and labor costs, with new housing starts nearly flat overall but down in owner-occupied and wooden homes.

• Despite year-over-year declines, gross margin improved and progress toward full-year targets remains on track.

Financial highlights

• Gross profit margin improved to 12.0% from 11.7% year-over-year, with gross profit at ¥11,178 million (up from ¥11,092 million).

• Operating profit for Q1 was ¥1,375 million, down 19.2% year-over-year, and ordinary profit was ¥1,534 million, down 17.7%.

• EPS for Q1 was ¥26.69, compared to ¥32.46 in the prior year.

• Selling, general, and administrative expenses increased by 4.4%, mainly due to higher personnel and logistics costs.

• Progress toward full-year targets: 23.2% of revenue, 21.9% of recurring profit, and 15.4% of net income achieved in Q1.

Outlook and guidance

• Full-year revenue forecast is ¥400,000 million, operating profit ¥7,000 million, and net income ¥5,000 million.

• No changes have been made to previously announced forecasts as the business environment remains within expectations.

• Annual dividend forecast raised to ¥45 per share from ¥40 in the previous year.