Elecom Co (6750) Q1 2027 earnings summary

Executive summary

• Achieved significant YoY growth in sales and profit for 1Q FY03/27, driven by B2B expansion, new M&A consolidation, and strong e-commerce and device segment performance.

• Net sales reached ¥33.9 billion (+18.4% YoY), operating profit ¥3.87 billion (+28.6% YoY), and net profit ¥2.96 billion (+57.5% YoY).

• B2B growth was led by NAS, industrial memory, and the consolidation of Nippon Antenna; EC and B2C saw gains in power supplies, mice, and mobile accessories.

• Gross profit improved 16.5% YoY, despite higher procurement costs and a weaker yen, due to new high value-added products, price revisions, and cost management.

• M&A activity included the consolidation of Nippon Antenna and acquisition of TEJ Holdings (TAMA ELECTRONICS INDUSTRY CORP.), strengthening market presence and synergies.

Financial highlights

• Gross profit rose to ¥13.54 billion (+16.5% YoY), though gross margin slightly declined to 39.9%.

• Operating profit margin improved to 11.4% (+0.9pt YoY).

• Ordinary profit surged to ¥4.26 billion (+55.9% YoY), aided by FX gains.

• Basic earnings per share: ¥36.81 (vs. ¥24.65 YoY).

• Cash and cash equivalents at period-end were ¥64.1 billion, up ¥22.2 billion YoY.

Outlook and guidance

• Full-year forecasts maintained: net sales ¥144.8 billion, operating profit ¥16.5 billion, ordinary profit ¥16.4 billion, net profit ¥11.45 billion, basic EPS ¥142.17.

• Dividend planned at ¥58 per share (+¥1 YoY), marking the 17th consecutive annual increase, with a payout ratio target of 30% or above.

• No change to previously announced earnings forecasts.