Toto (5332) Q1 2027 earnings summary

Executive summary

• Net sales for the first quarter rose 1.7% year-over-year to ¥168.6 billion, but operating profit declined 1.6% to ¥8.1 billion, with overall progress tracking to plan.

• Profit attributable to owners of parent increased 9.5% year-over-year to ¥6.9 billion, and comprehensive income rebounded to ¥17,665 million from a loss in the prior year.

• Japan Housing Equipment Business experienced declines in both sales and profits, mainly due to lower bathroom product sales and higher procurement costs.

• International Housing Equipment and Advanced Ceramics segments achieved higher sales, with Advanced Ceramics also posting profit growth driven by strong demand and favorable exchange rates.

Financial highlights

• Net sales rose to ¥168.6 billion, up 2% year-over-year, with operating profit at ¥8.1 billion (down 2% YoY) and operating margin of 4.8%.

• Ordinary profit increased to ¥9.4 billion, up 7% year-over-year, and profit before income taxes reached ¥10.4 billion.

• Profit attributable to owners of parent reached ¥6.9 billion, up 10% year-over-year, and basic earnings per share improved to ¥42.00.

• Gross profit increased to ¥59.5 billion from ¥58.6 billion year-over-year.

• Total assets decreased to ¥808.1 billion, while net assets increased to ¥541.6 billion, raising the equity-to-asset ratio to 66.3%.

Outlook and guidance

• Full-year net sales forecast is ¥785.0 billion, with operating profit projected at ¥60.0 billion and profit attributable to owners of parent at ¥46.0 billion.

• Annual dividend forecast is ¥120 per share, up from ¥110 in the previous year.

• Temporary impacts from Americas inventory adjustments and semiconductor supply chain disruptions are expected to be recovered in subsequent quarters.

• ROE and ROIC are forecast to improve to 8.5% and 8.6%, respectively.