Noritsu Koki Co (7744) Q1 2025 earnings summary

Executive summary

• FY25 1Q revenue rose 1.0% year-over-year to ¥27.2 billion, driven by strong JLab sales and favorable forex, despite a tough comparison with last year's one-off gains.

• Operating EBITDA declined 14.7% year-over-year to ¥6.66 billion, with margin down 4.5 points to 24.5%.

• Net profit dropped 46.3% year-over-year to ¥2.81 billion, mainly due to ¥1.1 billion in forex valuation losses on foreign currency assets.

• Operating profit fell 43.4% to ¥4.32 billion; comprehensive income turned negative at ¥(4.58) billion.

• Segment results: Teibow earnings were flat, Alpha Theta saw a revenue decline due to last year's one-off, and JLab posted strong revenue growth.

Financial highlights

• Revenue: ¥27.2 billion (+1.0% YoY); Operating EBITDA: ¥6.66 billion (–14.7% YoY); Operating profit: ¥4.32 billion (–43.4% YoY); Net profit: ¥2.81 billion (–46.3% YoY).

• Gross profit increased to ¥14.12 billion from ¥13.74 billion year-over-year.

• Cash and cash equivalents decreased by ¥3.39 billion to ¥89.47 billion; net debt improved by ¥10.03 billion.

• Total assets decreased to ¥285.73 billion from ¥299.37 billion at year-end 2024.

• Equity attributable to owners of parent declined to ¥212.70 billion from ¥222.25 billion.

Outlook and guidance

• FY25 full-year revenue forecast revised down by ¥1.9 billion to ¥110.7 billion (+3.9% YoY); net profit forecast lowered by ¥1.0 billion to ¥10.7 billion (–33.6% YoY).

• Operating profit forecast is ¥16.0 billion (–22.0% YoY); Operating EBITDA for FY25 is forecast at ¥22.5 billion (–7.3% YoY).

• Forecasts reflect updated forex assumptions and a 10% additional US tariff; demand trend changes not yet factored due to uncertainty.

• Dividend forecast remains unchanged despite lower net profit guidance; annual dividend forecast (pre-split) is ¥221.00 per share, post-split year-end dividend forecast is ¥111.00.

• Basic EPS forecast is ¥100.28, reflecting a 3-for-1 stock split.