Roland (7944) Q1 2025 earnings summary

Executive summary

• Q1 sales increased 2.1% YoY to ¥22.5bn; net profit surged 87.1% to ¥1.8bn; sales aligned with plan.

• Operating profit declined 7.8% YoY to ¥1.4bn, while ordinary profit rose 19.6%.

• U.S. tariff policies and global uncertainties are impacting the industry, but risk is relatively low.

• Measures are being implemented to defend and expand market share.

• Earnings forecast revised to a range due to uncertainties; dividend forecast unchanged.

Financial highlights

• Q1 sales: ¥22.5bn (+2.1% YoY); operating profit: ¥1.4bn (-7.8% YoY); net income: ¥1.8bn (+87.1% YoY).

• Gross profit margin improved by 1.0pt YoY (43.5% excl. FX); gross profit was ¥9.6bn (42.4% margin).

• EBITDA: ¥2.2bn (-3.1% YoY); temporary net income increase due to tax timing.

• Basic EPS rose to 67.65 yen from 35.63 yen YoY.

• Comprehensive income was negative ¥415mn, mainly due to FX losses.

Outlook and guidance

• Full-year sales forecast revised to ¥96.9–100.9bn; OP forecast ¥8.1–10.1bn; net income ¥5.7–7.2bn.

• Basic EPS guidance set at 214.83–271.36 yen.

• Assumes China tariffs at 145% and 10% for other regions; does not factor in global recession.

• Dividend forecast maintained; policy targets 50% total return ratio, minimum 30% if growth funds needed.

• Forecasts revised due to U.S. tariff policy uncertainty; first half forecast withdrawn.