Rinnai (5947) investor relations material

Executive summary

• Net sales reached a record-high ¥113.6 billion (¥113,669 million), up 10.6% year-over-year, driven by overseas market growth and M&A activity despite a slowdown in China.

• Operating income declined 5.2% year-over-year to ¥9.1 billion (¥9,195 million) due to rising raw material and business costs, but exceeded internal projections.

• Net income attributable to owners rose 1.8% year-over-year to ¥6.7 billion (¥6,744 million), aided by lower profit attributable to non-controlling interests.

• The new medium-term plan, "accelerate 2030," was launched to strengthen the business foundation and pursue sustainable growth.

Financial highlights

• Gross profit increased to ¥37,839 million from ¥35,347 million year-over-year.

• Ordinary income decreased 3.5% year-over-year to ¥10.3 billion (¥10,302 million).

• Net income per share was ¥48.85, up from ¥47.15 in the prior year.

• Comprehensive income improved to ¥9,425 million from a loss of ¥1,939 million a year earlier.

• Net income to net sales ratio improved to 5.9%.

Outlook and guidance

• Full-year net sales forecast at ¥500,000 million (+6.3% year-over-year); operating income projected at ¥50,500 million (-0.1%), net income at ¥36,300 million (+0.4%).

• First-half and full-year forecasts remain unchanged; domestic price adjustments expected to offset rising copper prices in the second half.

• First-quarter performance slightly ahead of internal projections.