SEIKO GROUP (8050) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY24 reached 74.0 billion yen, up 17.6% year-over-year, with operating profit at 5.1 billion yen, an 80.8% increase year-over-year.

• All business domains (EVS, DS, SS) achieved revenue and profit growth, with EVS showing significant gains driven by luxury demand and inbound tourism.

• Profit attributable to owners of parent increased 44.8% year-over-year to 3.5 billion yen.

• Upward revision of full-year forecasts due to continued favorable performance expected from Q2 onward.

Financial highlights

• Gross profit rose to 32.7 billion yen (+18.9% year-over-year), with gross margin improving by 0.5pt to 44.2%.

• Ordinary profit increased 45.1% year-over-year to 5.4 billion yen; EPS was 85.66 yen compared to 58.43 yen in the prior year.

• Free cash flow improved to 0.9 billion yen for Q1 FY24, up from 0.2 billion yen in Q1 FY23.

• Comprehensive income for Q1 FY24 was 7.2 billion yen, down from 9.1 billion yen in Q1 FY23 due to lower other comprehensive income.

• Exchange rate fluctuations contributed positively to both net sales (+3.8 billion yen) and ordinary profit (+1.2 billion yen).

Outlook and guidance

• FY24 net sales forecast revised upward to 306.0 billion yen (+2.0% from previous forecast), operating profit to 18.0 billion yen (+5.9%), and profit attributable to owners of parent to 11.5 billion yen (+4.5%).

• Segment forecasts raised for EVS (notably Watches) and DS domains, reflecting strong Q1 and recovery trends.

• Earnings per share for FY24 projected at 281.78 yen.