ARE Holdings (5857) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025.3 reached 92.3 billion yen, up 29.7 billion yen year-over-year, driven by higher gold prices and increased collection, especially in the Jewelry sector.

• Operating profit rose to 3.6 billion yen, a 1.2 billion yen increase year-over-year, with no loss from rhodium price declines as seen last year.

• Equity method investment gain from RENATUS Co., Ltd. contributed positively starting this quarter.

• Growth was driven by higher gold collection volumes and strong performance in the precious metals recycling and trading businesses, while the North American refining business saw lower processed product sales.

• Environmental Preservation segment results reflect the exclusion of Japan Waste Corporation as discontinued operations and inclusion of Renatus Co., Ltd. equity method profit.

Financial highlights

• Revenue: 92.3 billion yen (up 29.7 billion yen year-over-year).

• Operating profit: 3.6 billion yen (up 1.2 billion yen year-over-year), maintaining a 3.9% margin.

• Profit before tax: 3.8 billion yen (up 1.3 billion yen year-over-year).

• Net profit attributable to owners: 3.2 billion yen (up 0.8 billion yen year-over-year).

• Gross profit increased to ¥5,192 million from ¥4,413 million year-over-year.

Outlook and guidance

• FY2025.3 full-year revenue plan is 370.0 billion yen; operating profit plan is 18.0 billion yen.

• Annual dividend forecast for FY2025.3 is 80 yen per share, with a total return ratio expected at 54.0%.

• No changes to previously announced forecasts.