Taiyo Yuden (6976) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2025 were ¥81.1 billion, up 11.7% year-over-year, driven by recovery in information equipment, IT infrastructure, and yen depreciation.

• Operating profit reached ¥2.6 billion, reversing a loss last year and up 29% quarter-over-quarter.

• Ordinary profit surged 622.6% year-over-year to ¥8.4 billion, aided by ¥5.4 billion in foreign exchange gains.

• Profit attributable to owners was ¥6.3 billion, up 35.9% sequentially and 598.6% year-over-year.

Financial highlights

• Net sales exceeded internal forecasts, driven by strong demand in information equipment and IT infrastructure.

• Gross profit improved to ¥17.5 billion, with gross margin rising to 21.6% from 17.6% year-over-year.

• Operating profit margin improved to 3.2% from 2.5% in the previous quarter.

• Yen depreciation contributed ¥2.5 billion to net sales and ¥1.4 billion to operating profit sequentially.

• R&D expenses increased 14.9% year-over-year to ¥3.6 billion.

Outlook and guidance

• Full-year forecast maintained: net sales ¥350.0 billion (+8.5% to +9% y/y), operating profit ¥20.0 billion (+120% y/y), ordinary profit ¥16.5 billion, profit attributable to owners ¥11.0 billion, EPS ¥88.26.

• 2Q net sales expected to rise 9–14% sequentially, with capacitors and inductors leading growth.

• Assumed average exchange rate for FY2025 is 145 yen/USD.

• No change to previously announced forecasts; demand growth expected in automotive and IT infrastructure, but risks from market and geopolitical factors remain.