Teijin (3401) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue rose 11.5% YoY to ¥255.3B; adjusted operating income increased 115.7% to ¥10.4B, and profit attributable to owners rose 110.2% to ¥4.5B.

• Profit was ¥5.2B versus ¥2.7B a year earlier.

• IFRS was adopted from FY2024, with prior results restated for comparability.

• Infocom’s planned divestiture led to its classification as a discontinued operation and its assets and liabilities as held for sale.

Financial highlights

• Q1 EBITDA was ¥29.3B, up 22.0% YoY; depreciation and amortization was ¥19.3B, down 1.2%.

• Gross profit increased to ¥63.4B from ¥58.3B, and operating income rose to ¥8.0B from ¥4.6B.

• Profit before tax rose 58.8% to ¥8.4B; basic EPS doubled to ¥23.12 from ¥11.01.

• Finance income and costs swung to a ¥1.6B expense from ¥0.6B income, mainly on lower foreign-exchange gains, including derivative valuation gains.

• Operating cash flow improved to ¥8.6B from negative ¥5.9B; free cash flow was negative ¥8.4B versus negative ¥21.3B.

Outlook and guidance

• FY2024 revenue forecast is ¥1,010B and adjusted operating income ¥23B; versus the prior outlook, these are increases of ¥35B and ¥3B.

• FY2024 operating income is forecast at ¥19B; profit attributable to owners, EPS and free cash flow remain undetermined.

• Annual dividend forecast remains ¥30 per share, split between ¥15 interim and ¥15 year-end.

• FY2024 assumptions include ¥151/$, ¥162/€, Dubai crude at $82/barrel and European natural gas at €35/MWh.