Toyota Tsusho (8015) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2024 was ¥2,541.5 billion, nearly flat year-over-year, with gross profit up 7% to ¥275.7 billion and operating profit rising 4.7% to ¥119.1 billion; net profit attributable to owners increased 3.4% to ¥95.8 billion.

• Growth in North American automotive-related trading and yen depreciation offset declines in raw material prices.

• Comprehensive income fell 26.8% year-over-year to ¥178.2 billion, mainly due to lower other comprehensive income.

• Segment performance was mixed, with notable gains in Metal + (Plus), Supply Chain, Green Infrastructure, Digital Solutions, Lifestyle, and Africa divisions, while Circular Economy and Mobility saw declines.

Financial highlights

• Gross profit rose to ¥275.7 billion from ¥257.1 billion year-over-year; operating profit up ¥5.3 billion; net profit up ¥3.1 billion.

• Total assets increased to ¥7,338.0 billion as of June 30, 2024.

• Net interest-bearing debt rose by ¥94.6 billion; net DER at 0.49 times.

• Net cash from operating activities was ¥79.4 billion, down from ¥92.2 billion year-over-year; investing cash flow improved by ¥44.8 billion.

• Basic EPS was ¥90.78, up from ¥87.83, calculated as if the 3-for-1 stock split had occurred at the start of the fiscal year.

Outlook and guidance

• Full-year profit forecast raised to ¥350.0 billion, up 5.6% year-over-year; basic EPS forecast at ¥331.56 (post-split basis).

• Progress rate for 1Q profit achievement is 27% of full-year guidance.

• Dividend payout ratio target set at 30% or more, with full-year dividend forecast at ¥100 per share post-stock split.