Koa Shoji Holdings (9273) Q1 2025 earnings summary

Executive summary

• Net sales for the three months ended September 30, 2024, were ¥5,027m, down 13.7% YoY.

• Operating profit declined 6.0% to ¥1,125m.

• Ordinary profit was ¥1,200m, up 0.8% YoY.

• Profit attributable to owners of parent rose 4.9% to ¥794m; EPS was ¥18.87.

• Pharmaceutical growth and improved profitability partly offset weaker API sales; Zaō Plant’s second factory construction remained on schedule.

Financial highlights

• Gross profit was ¥1,658m, down 3.8% YoY; SG&A expenses were ¥532m, up from ¥525m.

• Depreciation was ¥168m vs. ¥174m; R&D expense was ¥30m vs. ¥26m; capital expenditure was ¥91m vs. ¥351m.

• Total assets were ¥31,990m as of September 30, 2024, nearly unchanged from June 30, 2024.

• Net assets were ¥25,272m, with an equity ratio of 79.0%.

• Comprehensive income for the quarter was ¥768m.

Outlook and guidance

• FY2025 guidance was unchanged: revenue ¥23,350m (+5.5%), operating income ¥4,620m (+5.4%), and ordinary income ¥4,600m (+5.3%).

• Profit attributable to owners of parent is forecast at ¥3,080m, up 4.5%; full-year EPS forecast is ¥73.13.

• FY2025 external API sales are forecast at ¥14,690m (+7.0%) and pharmaceutical sales at ¥8,660m (+3.1%).