Tokyo Ohka Kogyo (4186) Q1 2025 earnings summary

Executive summary

• Net sales rose 20.6% year-over-year to 54.3 billion yen, driven by strong semiconductor demand for PCs, smartphones, and generative AI products.

• Operating income increased 69.2% year-over-year to 9.8 billion yen; profit attributable to owners of parent surged 109.1% to 7.5 billion yen, aided by extraordinary income from a gain on receipt of contingent consideration related to an equipment business transfer.

• Launched “tok Medium-Term Plan 2027” aiming for global leadership in photoresists and expansion in new business fields.

Financial highlights

• Net sales: 54.3 billion yen (up 20.6% YoY); operating income: 9.8 billion yen (up 69.2% YoY); ordinary income: 9.8 billion yen (up 63.0% YoY); EBITDA: 11.9 billion yen (up 51.4% YoY).

• Gross profit reached 20.5 billion yen, up from 15.7 billion yen year-over-year.

• Basic earnings per share increased to 62.91 yen from 29.72 yen year-over-year.

• Comprehensive income fell 59.8% year-over-year to 3.3 billion yen due to negative foreign currency translation adjustments.

• Average exchange rate: ¥151.3/$ in FY2025 1Q vs. ¥147.8/$ in FY2024 1Q.

Outlook and guidance

• Full-year forecast unchanged: net sales projected at 222.0 billion yen (up 10.5% YoY), operating income at 37.3 billion yen (up 12.7% YoY), both expected to reach record highs.

• Profit attributable to owners of parent forecast at 24.6 billion yen (up 8.4% YoY).

• No changes to previously announced financial forecasts.

• Growth assumptions include continued demand for generative AI and new customer plant operations.