Kurita Water Industries (6370) Q1 2025 earnings summary

Executive summary

• Orders rose 0.9% year-over-year to ¥99.3B, with net sales up 3.8% to ¥94.0B for the first quarter ending March 2025.

• Business profit increased 12.1% year-over-year to ¥8.4B, and operating profit grew 6.2% to ¥8.6B.

• Profit attributable to owners of parent was flat at ¥5.7B, with basic EPS at ¥50.74, up 0.1% year-over-year.

• The global economy showed moderate recovery, with Japan's manufacturing rebounding and overseas markets mixed.

Financial highlights

• Orders: ¥99.3B (+0.9% YoY); Net sales: ¥94.0B (+3.8% YoY); Business profit: ¥8.4B (+12.1% YoY).

• Operating profit: ¥8.6B (+6.2% YoY); Profit before tax: ¥8.7B (+7.6% YoY).

• Basic EPS: ¥50.74 (+0.1% YoY); FX rates: USD/JPY 155.9, EUR/JPY 167.9, CNY/JPY 21.5.

• Gross profit improved to ¥32.6B from ¥29.3B YoY; gross margin rose to 34.7% from 32.4%.

• Cash and cash equivalents at quarter-end were ¥53.1B, down ¥959M from the previous fiscal year-end.

Outlook and guidance

• 1H FY2025 forecast: Orders ¥212.0B (+13.7% YoY), Net sales ¥194.0B (+3.0% YoY), Business profit ¥20.0B (+10.7% YoY).

• Operating profit forecasted at ¥19.5B (+6.6% YoY), profit attributable to owners of parent at ¥13.5B (+7.2% YoY).

• Full-year earnings forecasts remain unchanged from those announced in May 2024.

• Forecasts are subject to change due to global economic conditions.