Seibu Giken (6223) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales rose 18.3% year-over-year to JPY 6,835 million, driven by strong VOC concentrator sales in China and Asia.

• Operating profit surged 159.1%–259.1% year-over-year to JPY 1,259 million, reflecting higher sales and improved gross margins.

• Net profit attributable to shareholders increased 92.1%–192.0% year-over-year to JPY 924 million.

• Order intake for Q1 2025 was 109.6% of the previous year, with a solid backlog supporting future revenue.

• Comprehensive income declined 71.6% year-over-year to JPY 314 million, mainly due to foreign currency translation losses.

Financial highlights

• Gross profit margin improved to 40.7% from 34.6% year-over-year, with gross profit at JPY 2,784 million.

• EBITDA more than doubled to JPY 1,485 million, with EBITDA margin rising to 21.7%.

• Ordinary profit more than doubled to JPY 1,221 million from JPY 596 million year-over-year.

• Cash and cash equivalents stood at JPY 13,807 million as of March 31, 2025.

• Net assets decreased to JPY 28,481 million from JPY 29,957 million at year-end.

Outlook and guidance

• FY2025 net sales forecast unchanged at JPY 34,632 million, up 8.0% year-over-year.

• Operating profit expected to decline 11.9% year-over-year to JPY 3,552 million due to margin pressure outside Japan.

• Annual dividend forecast at JPY 70 per share; share buyback planned up to JPY 1 billion or 700,000 shares.

• Ordinary profit forecasted to decrease 13.4% to JPY 3,630 million; net profit projected to fall 6.7% to JPY 3,111 million.

• Growth in Japan expected from energy device investment; overseas markets face tougher competition and lower margins.