Toho Gas Co (9533) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 declined 5.9% year-over-year to ¥146.1 billion, with operating income down 35.5% to ¥15.2 billion and net income attributable to owners down 26.5% to ¥13.6 billion.

• Comprehensive income dropped 29.1% year-over-year to ¥18,903 million.

• Decrease in profits mainly due to market fluctuations impacting procurement costs and a time lag in cost adjustments, particularly in the gas segment.

• Customer accounts and electricity sales volume increased, while city gas sales volume declined slightly.

Financial highlights

• Operating income fell by ¥8.3 billion year-over-year, ordinary income by ¥8.6 billion, and net income by ¥4.9 billion.

• Gross profit declined to ¥46,333 million from ¥53,813 million year-over-year.

• Ordinary income decreased 33.6% to ¥17,064 million; EPS was ¥131.30, down from ¥176.91.

• Cost of sales decreased 1.7%, but selling, general, and administrative expenses rose 3.0%.

• Crude oil price and exchange rate increased compared to the previous year, impacting costs.

Outlook and guidance

• FY2024 full-year forecast unchanged: net sales expected at ¥640.0 billion (+1.1%), operating income at ¥21.0 billion (-37.5%), and net income at ¥21.0 billion (-23.1%) year-over-year.

• No revision to previously announced forecasts.

• Customer base and energy sales volumes projected to grow modestly.

• Sensitivity analysis: a $1/bbl change in crude oil price or ¥1/$ change in exchange rate impacts gas business gross profit by ¥0.1–0.2 billion.