KOA Corporation (6999) Q1 2025 earnings summary

Executive summary

• Net sales for the three months ended June 30, 2024, were ¥16,211 million, down 4.5% year-over-year due to weaker sales in industrial equipment and appliances, mainly in Japan and ASEAN, despite strong automotive demand and yen depreciation.

• Operating profit fell 73.4% year-over-year to ¥230 million, impacted by lower sales and higher fixed costs, especially personnel expenses.

• Ordinary profit decreased 58.4% to ¥666 million, with foreign exchange gains of ¥278 million partially offsetting the decline.

• Profit attributable to owners of parent dropped 65.1% to ¥369 million.

Financial highlights

• Gross profit for the quarter was ¥4,472 million, down from ¥4,812 million year-over-year.

• Comprehensive income rose to ¥2,997 million from ¥2,684 million, driven by gains in foreign currency translation and valuation of securities.

• Earnings per share for the quarter were ¥9.96, compared to ¥28.55 in the prior year.

• Total assets increased to ¥133,062 million as of June 30, 2024, up from ¥129,566 million at the previous fiscal year-end.

• Net assets rose to ¥80,642 million, with an equity ratio of 60.6%.

Outlook and guidance

• Full-year forecast for FY2025 remains unchanged: net sales of ¥71,900 million (up 10.9% year-over-year), operating profit of ¥3,900 million (up 17.7%), ordinary profit of ¥4,400 million (up 15.6%), and profit attributable to owners of parent of ¥3,200 million.

• Earnings per share for the full year forecasted at ¥86.27.

• Economic outlook remains highly uncertain due to geopolitical tensions, inflation, and monetary tightening.