NIPPON KANZAI Holdings Co (9347) Q1 2025 earnings summary

Executive summary

• Net sales rose 14.0% year-over-year to ¥31,463 million, driven by steady contract renewals and construction-related orders.

• Operating income increased 2.6% year-over-year to ¥2,062 million, reflecting efficiency improvements and fee revisions.

• Ordinary income declined 4.0% year-over-year to ¥2,282 million due to lower foreign exchange gains.

• Profit attributable to owners of parent dropped 72.0% year-over-year to ¥429 million, impacted by a litigation loss.

Financial highlights

• Gross profit increased to ¥9,066 million from ¥6,339 million year-over-year.

• Comprehensive income rose 27.7% year-over-year to ¥2,237 million.

• Equity ratio stood at 72.1% as of June 30, 2024.

• Total assets decreased by 0.7% from the previous fiscal year-end to ¥91,963 million.

• Net assets remained stable at ¥69,154 million.

Outlook and guidance

• Full-year net sales forecast at ¥136,500 million, up 11.3% year-over-year.

• Full-year operating income projected at ¥8,500 million, up 2.8% year-over-year.

• Profit attributable to owners of parent expected to reach ¥6,100 million, up 7.4% year-over-year.

• No changes to previously announced forecasts; business performance is in line with expectations.