Makita (6586) Q1 2025 earnings summary

Executive summary

• Revenue rose 5.1% year-over-year to ¥193,932 million for the quarter ended June 30, 2024, driven by yen depreciation despite weak global demand.

• Operating profit increased 30.9% year-over-year to ¥21,344 million, with profit attributable to owners up 43.1% to ¥16,010 million.

• Cost improvements and favorable foreign exchange rates contributed to higher profitability.

Financial highlights

• Gross profit margin improved as gross profit rose to ¥63,154 million from ¥56,954 million year-over-year.

• Operating profit margin reached 11.0%, up from 8.8% a year earlier.

• Basic EPS increased to ¥59.51 from ¥41.30 year-over-year.

• Total assets grew to ¥1,088,586 million, and equity ratio improved to 83.6%.

• Cash flows from operating activities decreased to ¥30,817 million from ¥52,269 million year-over-year.

Outlook and guidance

• Full-year revenue forecast remains at ¥710,000 million, down 4.2% from the prior year.

• Operating profit projected at ¥75,000 million (+13.3%), with profit attributable to owners at ¥51,000 million (+16.7%).

• Basic policy is to maintain a total return ratio of at least 35%, with a minimum annual dividend of ¥20 per share.