Mitsubishi Pencil (7976) Q1 2023 earnings summary

Executive summary

• Q1 revenue rose 4.7% YoY to ¥18,955 million, supported by robust overseas sales and a domestic market recovery.

• Operating income increased 4.4% to ¥3,345 million despite higher raw-material and personnel costs; net income attributable to owners declined 0.7% to ¥2,396 million.

Financial highlights

• Gross profit rose 6.5% YoY to ¥9,575 million; selling, general and administrative expenses increased 7.7% to ¥6,229 million.

• Ordinary income edged up 0.2% to ¥3,487 million as lower foreign-exchange gains offset some operating-income growth.

• Average USD exchange rate was ¥133.26, versus ¥117.12 in Q1 2022.

Outlook and guidance

• FY2023 guidance: revenue ¥70,500 million, operating income ¥9,500 million, ordinary income ¥10,400 million and net income attributable to owners ¥7,100 million.

• Q1 progress against FY guidance: revenue 26.9%, operating income 35.2%, ordinary income 33.5% and net income 33.7%; performance described as progressing steadily.