Paltac (8283) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 3.2% year-over-year to ¥302.9bn, driven by strong demand for cosmetics, OTC pharmaceuticals, and summer seasonal products, as well as increased consumer outings and inbound tourism.

• Operating profit increased 6.5% year-over-year to ¥7.4bn, with profit margin improving to 2.45%.

• Profit attributable to owners rose 10.0% year-over-year to ¥6.0bn, with EPS at ¥96.68, up from ¥87.92.

Financial highlights

• Net sales: ¥302.9bn (+¥9.3bn, +3.2% YoY); operating profit: ¥7.4bn (+¥0.4bn, +6.5% YoY); ordinary profit: ¥8.3bn (+¥0.5bn, +6.5% YoY).

• Gross profit: ¥22.3bn (+3.0% YoY), gross profit margin 7.38%.

• SG&A expenses increased 1.3% to ¥14.9bn, with the SG&A ratio declining to 4.93%.

• Cash and cash equivalents at quarter-end were ¥53.6bn, down ¥7.4bn from March 31, 2024.

Outlook and guidance

• FY2025 guidance maintained: net sales projected at ¥1,190.0bn (+3.3% YoY), operating profit at ¥28.0bn (+2.6% to +3.0% YoY), and EPS at ¥350.06 (+6.6% YoY).

• Annual dividend forecast raised to ¥105.00 per share, up from ¥94.00 in the prior year.

• Company expects continued challenges from price hikes and rising logistics costs but aims for steady sales and profit growth under a new medium-term plan.