Micronics Japan (6871) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net sales were ¥14,124 million, up 19.8% year-over-year, with operating profit at ¥2,857 million (+13.9% YoY) and net income at ¥1,673 million (+31.7% YoY).

• Net sales declined 15.2% and operating profit dropped 27.3% sequentially.

• Comprehensive income dropped to ¥454 million from ¥1,851 million a year earlier, mainly due to negative foreign currency translation adjustments.

Financial highlights

• Gross profit in Q1 FY25 was ¥7,614 million, up 30.8% year-over-year but down 8.1% sequentially.

• Operating margin for Q1 FY25 was 20.2%, compared to 23.6% in the previous quarter.

• Ordinary profit rose 20.7% to ¥2,902 million, and basic EPS increased to ¥43.34 from ¥32.95.

• Free cash flow in Q1 FY25 was negative, with operating cash flow at ¥1,475 million and investment cash flow at ¥(5,994) million.

• R&D expenses increased to ¥1,564 million in Q1 FY25.

Outlook and guidance

• Full-year FY25 guidance revised: net sales of ¥51,000 million (+30.8% YoY), operating profit of ¥12,400 million (+43.5%), and net income of ¥8,500 million (+47.9%) for the nine months ending September 30, 2025.

• Six-month forecast: net sales of ¥31,600 million (+20.7% YoY), operating profit of ¥7,700 million (+33.6%), and net income of ¥5,300 million (+43.8%).

• FX rate assumptions: JPY 145/USD, JPY 0.10/KRW.