Yodoko (5451) Q1 2025 earnings summary

Executive summary

• Q1 FY3/25 net sales rose 3.0% YoY to ¥52,595 million; operating profit increased 40.4% to ¥4,061 million and profit attributable to owners of parent rose 59.1% to ¥3,210 million.

• Domestic earnings increased on higher general-distribution steel-sheet volumes and lower warranty costs; overseas earnings declined amid weak markets, particularly in Taiwan.

• Unstable demand, high material prices and global trade friction, including high Chinese steel exports, continued to challenge the business environment.

Financial highlights

• Gross profit increased to ¥8,949 million from ¥8,304 million, while SG&A declined to ¥4,880 million from ¥5,410 million.

• Ordinary profit rose 37.1% to ¥5,120 million; profit before tax increased 53.9% to ¥5,100 million.

• Comprehensive income was ¥5,799 million, including ¥760 million in available-for-sale securities valuation gains and ¥1,390 million in foreign-currency translation adjustments.

• Net assets were ¥215,412 million and the equity ratio was 71.1%.

Outlook and guidance

• FY3/25 forecast: net sales ¥207,000 million, operating profit ¥12,100 million, ordinary profit ¥19,200 million and attributable net income ¥11,900 million; sales forecast cut ¥5,000 million from May, while operating profit forecast rose ¥1,000 million.

• H1 FY3/25 forecasts were raised to net sales ¥106,000 million, operating profit ¥7,400 million, ordinary profit ¥8,800 million and attributable net income ¥5,300 million.

• H1 sales outlook reflects higher SYSCO Taiwan volume despite weaker China building-material demand; H2 volume may stagnate amid high Japanese steel prices.

• Management cited yen depreciation, rising prices and geopolitical tensions as risks, and emphasized agility and execution of Medium-Term Management Plan 2025.