Maxell (6810) Q1 2025 earnings summary

Executive summary

• Q1 net sales were ¥31,385 million (-2.6% YoY); operating profit was ¥2,336 million (+15.4%), ordinary profit ¥3,026 million (-3.6%) and profit attributable to owners of parent ¥2,207 million (-5.9%).

• Q1 exceeded the initial plan overall; FY March 2025 guidance remained unchanged.

Financial highlights

• Sales declined on lower rechargeable battery, semiconductor-related and licensing revenue, partly offset by primary batteries, health and beauty care products, and adhesive tapes.

• Gross profit rose to ¥8,057 million from ¥7,232 million; operating profit increased to ¥2,336 million from ¥2,024 million.

• Lower foreign-exchange gains contributed to ordinary profit falling 3.6% to ¥3,026 million and attributable profit declining to ¥2,207 million.

• Sales bridge: quantity -¥2.3 billion, price -¥0.3 billion and exchange +¥1.8 billion; total change -¥0.8 billion.

• Operating profit bridge: quantity -¥0.5 billion, price -¥0.3 billion, material cost reduction +¥0.1 billion and exchange +¥0.7 billion; total increase ¥0.3 billion.

Outlook and guidance

• FY March 2025 guidance remains unchanged: net sales ¥128,000 million, operating profit ¥8,000 million, attributable profit ¥6,000 million and EPS ¥131.43; Q1 progress was 25% for sales and 29% for operating profit.

• Energy primary battery orders for medical and electronic devices are expected to exceed plan; annual operating profit progress reached 81%.

• Semiconductor DMS recovery is expected from 2H; high-value-added tape orders are expected to support the industrial materials plan.

• Life Solution operating profit progress reached 42%; health and beauty care OEM sales are expected to remain stable, and hydraulic tool orders to recover from 2Q.