Sharp (6753) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥531.9 billion, down 1.7% year-over-year; operating loss narrowed to ¥5.8 billion from ¥7.0 billion last year.

• Ordinary loss widened to ¥10.1 billion, and net loss attributable to owners was ¥1.2 billion, compared to a profit a year ago.

• Brand Business segments achieved double-digit sales growth and operating profit up over 20%, while Device Business sales declined but losses stabilized.

• Comprehensive income for the quarter was ¥24.4 billion, down from ¥51.2 billion in Q1 FY2023.

• Ordinary and bottom-line profits declined, mainly due to significant negative foreign exchange impacts.

Financial highlights

• Gross profit margin improved as gross profit rose to ¥88.0 billion from ¥78.7 billion year-over-year.

• Operating loss: ¥5.8 billion (margin -1.1%), improved from ¥7.0 billion loss in Q1 FY2023.

• Foreign exchange losses of ¥7.4 billion weighed on results.

• Cash and deposits at quarter-end: ¥238.1 billion; cash and cash equivalents: ¥214.2 billion.

• Net cash used in operating activities was ¥32.1 billion; net cash provided by financing activities was ¥18.3 billion.

Outlook and guidance

• FY2024 forecast unchanged: net sales ¥2,100.0 billion, operating profit ¥10.0 billion, ordinary profit ¥10.0 billion, bottom-line profit ¥5.0 billion.

• FY2025 forecast: net sales ¥2,100.0 billion (down 9.6% year-over-year), operating profit ¥10.0 billion, ordinary profit ¥10.0 billion, net profit ¥5.0 billion, EPS ¥7.70.

• No revisions to financial or dividend forecasts; dividend for FY2025 undecided.

• Average exchange rate assumptions: USD/JPY 150.00, EUR/JPY 160.00.