MTG (7806) Q1 2025 earnings summary

Executive summary

• Achieved record-high quarterly consolidated sales and significant profit growth in FY2025 1Q, with net sales rising 38.6% year-over-year to ¥23,661 million and operating profit up 225.7% to ¥3,679 million, driven by strong domestic demand and successful new product launches.

• Profit attributable to owners of parent surged 488.7% year-over-year to ¥2,375 million, and EPS increased to ¥60.00 from ¥10.23.

• Upward revision of full-year guidance, with operating profit expected to more than double year-over-year.

• Strategic focus on expanding sales channels, launching new products, and strengthening brand value.

Financial highlights

• FY2025 1Q sales: ¥23.66 billion (+39% YoY); operating income: ¥3.67 billion (+226% YoY); net income: ¥2.37 billion (+489% YoY).

• Gross profit increased from ¥10,424 million to ¥14,665 million year-over-year, with gross profit margin improving to 62% (from 61% YoY); operating profit margin reached 16%.

• SG&A expenses rose 18% YoY to ¥10,985 million, but were controlled relative to sales growth.

• Net assets increased to ¥44,773 million, with an equity ratio of 75.6%.

• Foreign exchange gains contributed to ordinary income growth.

Outlook and guidance

• Full-year sales forecast revised to ¥88.0 billion (+22% YoY); operating income to ¥7.0 billion (+114% YoY); net income to ¥4.5 billion (+97% YoY).

• Double-digit sales growth targeted, with continued investment in new products and brand development.

• Progressive dividend policy with planned increase from ¥13 to ¥15 per share.