Rengo Co (3941) Q1 2025 earnings summary

Executive summary

• Net sales increased 9.3% year-over-year to ¥244.5 billion, driven by growth in flexible and heavy duty packaging and increased consolidated subsidiaries.

• Operating profit declined 10.8% year-over-year to ¥12.1 billion, impacted by higher fixed costs and changes in product mix.

• Profit attributable to owners of parent rose 45.5% year-over-year to ¥14.0 billion, supported by a significant extraordinary gain and a ¥5,448 million gain on bargain purchase from new subsidiaries.

Financial highlights

• Gross profit increased to ¥47,175 million from ¥43,932 million year-over-year.

• Ordinary profit decreased 7.8% year-over-year to ¥13.3 billion.

• Basic EPS rose to ¥56.49 from ¥38.84 year-over-year.

• Comprehensive income grew to ¥26,226 million, up 22.6% year-over-year.

• Total assets increased by ¥61.0 billion to ¥1,233.5 billion as of June 30, 2024.

Outlook and guidance

• Full-year net sales forecast at ¥1,000,000 million, up 11.0% year-over-year.

• Full-year operating profit projected at ¥50,000 million, up 2.3% year-over-year.

• Full-year profit attributable to owners of parent expected at ¥35,000 million, up 6.0% year-over-year.

• No revision to previously announced forecasts due to prevailing uncertainties.

• Forward-looking statements are based on currently available information and are not guarantees of future performance.