Toda (1860) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 decreased 2.3% year-over-year to ¥111.8 billion, mainly due to lower sales in Architectural Construction and Domestic Investment and Development segments.

• Operating loss of ¥0.1 billion, compared to operating income of ¥2.1 billion in Q1 FY2023, driven by a 7.8% decline in gross profit and a 13.5% increase in SG&A expenses.

• Net income attributable to owners of the parent rose 93.5% year-over-year to ¥3.7 billion, supported by extraordinary gains from sales of investment securities.

Financial highlights

• Gross profit fell 7.8% year-over-year to ¥10.9 billion; SG&A expenses increased to ¥11.0 billion.

• Ordinary income dropped 46.7% year-over-year to ¥2.5 billion.

• Comprehensive income decreased 47.5% year-over-year to ¥7.4 billion.

• Basic EPS for Q1 FY2024 was ¥12.23, up from ¥6.20 in Q1 FY2023.

• Total assets at June 30, 2024 were ¥870.3 billion, down 0.2% from March 31, 2024.

• Net assets increased 0.4% to ¥357.1 billion; equity ratio at 40.2%.

Outlook and guidance

• Full-year FY2025 consolidated net sales forecast at ¥600.0 billion, up 14.8% year-over-year.

• Operating profit projected at ¥30.0 billion (+67.5%), ordinary profit at ¥35.5 billion (+39.3%), and net income attributable to owners of the parent at ¥27.0 billion (+67.7%).

• Dividend forecast raised to ¥29.00 per share for FY2025.

• No changes to previously announced earnings forecasts.