KVK Corporation (6484) investor relations material

Executive summary

• Revenue increased 5.6% year-over-year to ¥8,195 million in Q1, driven by higher orders for mainstay products despite a challenging housing market and rising material costs.

• Operating profit declined 63.4% year-over-year to ¥273 million due to surging raw material prices and yen depreciation.

• Net income attributable to shareholders fell 27.5% year-over-year to ¥389 million, despite gains from the sale of investment securities.

• A new three-year mid-term plan was launched, targeting ¥33 billion in sales, 10% operating margin, and 10% ROE by FY2029.

Financial highlights

• Revenue: ¥8,195 million (up 5.6% year-over-year).

• Operating profit: ¥273 million (down 63.4% year-over-year).

• Ordinary profit: ¥626 million (down 21.3% year-over-year), including one-time gains from securities sales.

• Net income: ¥389 million (down 27.5% year-over-year).

• EPS: ¥48.51 (down from ¥67.12 year-over-year).

Outlook and guidance

• Full-year revenue forecast: ¥31,500 million (up 1.9% year-over-year).

• Full-year operating profit forecast: ¥1,300 million (down 5.7% year-over-year).

• Full-year net income forecast: ¥2,200 million (up 0.5% year-over-year).

• No change to previously announced guidance.

• Price increases planned from August to offset cost pressures.