Yodoko (5451) Q1 2025 earnings summary

Executive summary

• Net sales rose 3.0% year-over-year to ¥52,595 million for the quarter ended June 30, 2024, with operating profit up 40.4% to ¥4,061 million and profit attributable to owners of parent up 59.1% to ¥3,210 million.

• Domestic sales decreased but earnings increased, driven by higher sales volumes of steel sheet products for general distribution; overseas, sales increased but earnings declined due to weak steel markets, especially in Taiwan.

• The business environment remains challenging due to unstable demand, high material prices, and global trade friction, particularly from high Chinese steel exports.

Financial highlights

• Ordinary profit increased 37.1% year-over-year to ¥5,120 million.

• Comprehensive income rose to ¥5,799 million, up 1.3% year-over-year.

• Net assets increased to ¥215,412 million, with an equity ratio of 71.1%.

• Dividend forecast for FY3/25 is ¥309 per share, unchanged from previous guidance.

Outlook and guidance

• Full-year net sales forecast revised to ¥207,000 million (up 1.5% year-over-year), with profit attributable to owners of parent expected at ¥11,900 million (up 167.0%).

• Management expects a gradual economic recovery but notes ongoing risks from yen depreciation, rising prices, and geopolitical tensions.

• The company is focusing on agility and execution of its Medium-Term Management Plan 2025 to strengthen earnings.