Toho Gas Co (9533) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2024 declined 2.5% year-over-year to ¥293.4 billion, with operating income down 33.7% to ¥19.0 billion and net income attributable to owners down 26.9% to ¥17.9 billion.

• Comprehensive income dropped 76.3% year-over-year to ¥10.1 billion.

• Decrease in gas segment income due to market fluctuations and procurement cost time lags, partially offset by improved electricity segment performance.

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

Financial highlights

• Operating income for Q2 FY2024 was ¥19.0 billion, down from ¥28.8 billion year-over-year.

• Ordinary income fell 28.4% to ¥22.8 billion; net income attributable to owners was ¥17.9 billion, down 26.9%.

• Gross profit for the period was ¥81.6 billion, down from ¥90.0 billion in the prior year.

• Cash flows from operating activities increased to ¥46.2 billion, while free cash flows rose to ¥27.6 billion.

• Equity ratio remained stable at 61.8% as of September 30, 2024.

Outlook and guidance

• FY2024 net sales forecast at ¥640.0 billion, up 1.1% year-over-year; operating income expected to decline 31.5% to ¥23.0 billion.

• Net income forecast at ¥23.0 billion, down 15.8% from FY2023; net income per share forecast at ¥226.60.

• Customer accounts and electricity sales volume projected to grow, while city gas sales volume remains flat.

• CAPEX for FY2024 set at ¥68.0 billion, a 36.6% increase year-over-year.