Sanwa (5929) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 rose 7.7% year-over-year to ¥142,375 million, with operating profit up 14.5% to ¥9,931 million and profit attributable to owners of parent up 25.6% to ¥7,326 million, led by strong performance in Japan and North America after currency translation.

• The group focused on expanding core businesses in Japan, North America, and Europe, enhancing productivity, and promoting sustainability initiatives.

• Market conditions remained uncertain due to rising prices, high interest rates, yen depreciation, and geopolitical risks.

Financial highlights

• Net sales: ¥142,375 million, up 7.7% year-over-year; excluding currency impact, up 0.5%.

• Operating profit: ¥9,931 million, up 14.5% year-over-year; excluding currency impact, up 3.1%.

• Ordinary profit surged 30.4% year-over-year to ¥10,774 million, supported by a ¥1.03 billion rise in non-operating income (mainly interest income).

• Comprehensive income more than doubled to ¥16,853 million from ¥8,689 million a year earlier.

• Earnings per share rose to ¥33.50 from ¥26.39 year-over-year.

Outlook and guidance

• Full-year and first-half forecasts remain unchanged, with expectations to achieve initial targets across all regions.

• Full-year forecast for FY2025: net sales ¥625,000 million (+2.3% YoY), operating profit ¥62,500 million (-4.4% YoY), profit attributable to owners of parent ¥42,500 million (-1.7% YoY), EPS ¥194.17.

• Japan is expected to maintain steady demand, especially in factory facilities and redevelopment projects.

• North America anticipates recovery in the residential market and stable non-residential demand.

• Europe faces a challenging market, but cost reduction efforts are expected to help meet forecasts.