KVK Corporation (6484) Q1 2025 earnings summary

Executive summary

• Economic normalization and inbound demand recovery supported a mild economic upturn, but the housing market remained challenging due to rising material and labor costs and higher mortgage rates, dampening consumer sentiment.

• Product innovation included expanding the ultra-fine bubble shower lineup and launching new models, while production capacity was increased with new factory buildings and improved efficiency.

• Sales declined 5.1% year-over-year to ¥7,232 million, with operating profit down 11.7% to ¥590 million and ordinary profit down 10.5% to ¥602 million; net profit attributable to shareholders rose 0.9% to ¥408 million.

Financial highlights

• Revenue for Q1 FY2025 was ¥7,232 million, down 5.1% year-over-year.

• Operating profit was ¥590 million, down 11.7% year-over-year.

• Ordinary profit was ¥602 million, down 10.5% year-over-year.

• Net profit attributable to shareholders was ¥408 million, up 0.9% year-over-year.

• Comprehensive income was ¥540 million, down 17.2% year-over-year.

Outlook and guidance

• Full-year revenue forecast is ¥30,500 million, up 2.4% year-over-year.

• Operating profit forecast is ¥2,600 million, up 2.8% year-over-year.

• Net profit forecast is ¥1,900 million, up 27.0% year-over-year.

• No changes to previously announced guidance despite ongoing cost pressures and raw material price uncertainty.