Valqua (7995) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY3/2025 declined 1.7% year-over-year to ¥15,230 million, with gross profit down 3.2% and operating profit dropping 27.8%.

• Profit attributable to owners decreased 5.9% year-over-year to ¥1,298 million.

• Earnings per share for the quarter was ¥73.84.

Financial highlights

• Gross profit margin fell to 39.8% from 41.6% year-over-year, with gross profit at ¥6,057 million.

• Operating profit margin decreased to 9.5% from 14.3% year-over-year.

• Ordinary profit decreased to ¥1,856 million from ¥2,110 million year-over-year.

• Comprehensive income rose to ¥1,964 million from ¥1,824 million year-over-year.

• Equity ratio remained stable at 64.5%, with total net assets at ¥49,363 million.

Outlook and guidance

• Full-year forecast for FY3/2025 projects net sales of ¥62,500 million, operating profit of ¥6,500 million, and net profit of ¥5,000 million.

• Annual dividend forecast maintained at ¥150 per share, with a targeted total return ratio of 52.7%.

• Management aims to balance shareholder returns with capital investment and risk management.