Riken Keiki (7734) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥11,243 million, down 2.2% year-over-year, with operating profit at ¥2,673 million, down 12.6% year-over-year.

• Ordinary profit decreased 9.4% year-over-year to ¥3,226 million, and net profit attributable to owners of parent fell 11.6% to ¥2,239 million.

• The company faced continued uncertainty in the Japanese economy and its main customer base, particularly in the domestic semiconductor industry.

• Cost reduction, aggressive sales, and investment in new product development were emphasized to counteract market headwinds.

Financial highlights

• Gross profit for Q1 FY2024 was ¥6,011 million, up from ¥5,932 million in the prior year.

• Earnings per share (basic) for Q1 FY2024 was ¥48.08, compared to ¥54.41 in Q1 FY2023, reflecting a 2-for-1 share split.

• Comprehensive income for Q1 FY2024 was ¥2,909 million, down from ¥3,387 million year-over-year.

• Dividend forecast for FY2025 is ¥40 per share (post-split), unchanged from the previous guidance.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales ¥48,000 million (+5.3% YoY), operating profit ¥11,800 million (+2.8% YoY), net profit attributable to owners of parent ¥9,000 million (+7.4% YoY), EPS ¥193.24.

• No revisions to previously announced forecasts; management notes ongoing uncertainty in customer capital investment.