Nihon Kohden Corporation (6849) Q3 2025 earnings summary

Executive summary

• Net sales for the first nine months of FY2024 increased by 1.5% year-over-year to ¥158,476 million, driven by domestic growth in AEDs and consumables, while overseas sales declined slightly due to regional weakness and changes in subsidiary fiscal terms.

• Operating income rose 4.0% year-over-year to ¥10,935 million, supported by improved gross profit margin from higher in-house product sales, reduced inventory devaluation, and higher selling prices.

• Net income attributable to owners increased 2.7% to ¥8,137 million.

• Strategic focus on consumables, services, and AEDs contributed to domestic growth; international sales were mixed, with strong North America offset by declines in Asia, Latin America, and Europe.

• The company reaffirmed its FY2024 forecast, expecting full-year net sales of ¥227,000 million (+2.3%), operating income of ¥20,500 million (+4.6%), and net income of ¥12,000 million (-29.5%).

Financial highlights

• Net sales: ¥158,476 million (+1.5% YoY); Domestic sales: ¥101,153 million (+2.6% YoY); Overseas sales: ¥57,323 million (-0.4% YoY).

• Gross profit: ¥82,431 million (+5.3% YoY); Gross profit margin: 52.0% (up from 50.1%).

• Operating income: ¥10,935 million (+4.0% YoY); Operating income margin: 6.9%.

• Ordinary income: ¥13,506 million (+1.9% YoY); Net income attributable to owners: ¥8,137 million (+2.7% YoY).

• Comprehensive income for the nine months was ¥8,003 million, down 18.1% year-over-year.

Outlook and guidance

• FY2024 sales forecast revised to ¥227,000 million (+2.3% YoY); operating income forecast at ¥20,500 million (+4.6% YoY); net income forecast at ¥12,000 million (-29.5% YoY); gross profit margin expected at 51.2%.

• Domestic sales projected at ¥147,000 million (+3.3% YoY); overseas sales at ¥80,000 million (-3% YoY on local currency basis), with North America up 9.0% and declines in Latin America, Europe, and Asia.

• Consumables and services forecasted to grow 5.6% for the full year.

• Ongoing profit structure reforms expected to deliver a 50 bps margin improvement in FY2024, with 70% of the FY2026 target margin improvement anticipated by end of FY2026.