Citizen Watch Co. (7762) Q1 2027 earnings summary

Executive summary

• Net sales rose 30.3% year-over-year to ¥98.1 billion, with operating profit up 110.9% to ¥9.9 billion and ordinary profit up 90.8% to ¥11.7 billion, driven by strong performance in Watches, Machine Tools, and Devices and Components segments.

• Profit attributable to owners of parent decreased 2.9% year-over-year to ¥8.9 billion due to lower gains on sale of investment securities.

• Comprehensive income surged 161.6% year-over-year to ¥10.4 billion.

• Full-year and first-half forecasts were revised upward, reflecting strong demand and favorable currency trends.

Financial highlights

• Gross profit increased from ¥32.5 billion to ¥44.1 billion year-over-year.

• Basic earnings per share was ¥36.56, slightly down from ¥37.67 year-over-year.

• Total assets reached ¥478.7 billion, up ¥10.4 billion from the previous fiscal year-end.

• Net assets increased to ¥306.7 billion, with an equity-to-asset ratio of 62.2%.

• Q1 operating margin improved to 10.1% from 6.2% year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to ¥395.0 billion (+9.1%), operating profit to ¥40.5 billion (+17.4%), and profit attributable to owners of parent to ¥32.0 billion (+16.4%).

• Earnings per share forecast raised to ¥131.15.

• Assumed exchange rates for 2Q: 1 USD = ¥155, 1 EUR = ¥180.

• Annual dividend forecast raised to 53 yen per share.