Taiyo Holdings (4626) Q1 2027 earnings summary

Executive summary

• Net sales rose 26% year-over-year in Q1 FY2027, driven by yen depreciation and higher sales volumes in Electronics, especially PKG and rigid products.

• Medical and Pharmaceuticals segment saw a 2% year-over-year decline in net sales due to lower demand and reduced sales volume in key products.

• Full-year and half-year forecasts for FY2027 were revised upward, reflecting strong Electronics performance and accounting for special employee benefit expenses as an extraordinary loss.

• Sponsored the "Street Fighter League JAPAN 2026" esports competition for the sixth consecutive year.

• Comprehensive income increased 85.9% year-over-year to ¥10,033 million for the quarter.

Financial highlights

• Q1 FY2027 net sales: ¥39,019 million (+18% YoY); operating income: ¥10,505 million (+49% YoY); net income: ¥7,500 million (+62% YoY).

• EBITDA for Q1 FY2027 reached ¥12,680 million (+38% YoY); EBITDA margin improved to 32%.

• Exchange rate averaged 160.5 JPY/USD in Q1 FY2027, compared to 145.2 JPY/USD in Q1 FY2026.

• Gross profit for the quarter was ¥20,081 million, up from ¥15,707 million year-over-year.

• Ordinary income reached ¥11,220 million, a 68.5% increase year-over-year.

Outlook and guidance

• Revised FY2027 full-year forecast: net sales ¥149,100 million (+2% vs previous forecast), operating income ¥36,400 million (+6%), net income ¥25,400 million (+5%).

• Revised 1st-half forecast: net sales ¥75,900 million (+4%), operating income ¥18,900 million (+13%), net income ¥13,100 million (+11%).

• Upward revisions driven by Electronics outperformance; forecasts incorporate extraordinary loss from special employee benefit expenses.

• Full-year forecast for fiscal year ending March 31, 2027: net sales ¥149,100 million (+8.2% YoY), operating income ¥36,400 million (+11.9% YoY), profit attributable to owners of parent ¥25,400 million (+5.8% YoY), and basic EPS ¥228.26.

• Six-month forecast: net sales ¥75,900 million (+11.9% YoY), operating income ¥18,900 million (+24.4% YoY), profit attributable to owners of parent ¥13,100 million (+18.8% YoY), and basic EPS ¥117.73.