Seiren (3569) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales, operating profit, ordinary profit and net income reached first-quarter records; sales rose 19.0% and operating profit 41.5% year over year.

• FY2024 guidance remained unchanged, with new annual records forecast for a fourth consecutive year of sales and profit growth.

Financial highlights

• Revenue was ¥38,686 million, up 19.0%; operating income was ¥4,117 million, up 41.5%.

• Ordinary income rose 16.2% to ¥4,616 million; net income attributable to owners of the parent rose 12.3% to ¥3,505 million.

• Gross profit increased to ¥10,400 million from ¥8,691 million; basic EPS rose to ¥63.51 from ¥58.27.

• Comprehensive income rose 34.0% to ¥6,792 million, with foreign currency translation adjustments contributing significantly.

• Depreciation expense was ¥1,408 million, up 13.3%; cash-flow-basis capital expenditures were ¥1,004 million, down ¥109 million.

Outlook and guidance

• FY2024 forecasts unchanged: revenue ¥147,000 million (+3.6%), operating income ¥15,500 million (+10.2%), ordinary income ¥16,500 million (+1.8%) and net income ¥12,200 million (+0.4%).

• Forecast operating margin was 10.5%, versus 9.9% in FY2023; currency assumptions were ¥145 per US dollar and ¥20.0 per Chinese yuan.

• Full-year depreciation forecast was ¥5,660 million (+3.7%); capital expenditures were ¥6,500 million (+51.1%), including ¥3,290 million overseas and ¥3,210 million domestic.

• Annual dividend forecast raised to ¥60.00 per share.