Nitto Denko (6988) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2024 reached ¥249.3 billion, up 19.6% year-over-year, with operating profit surging 126.2% to ¥50.7 billion.

• Net profit attributable to owners was ¥36.1 billion, a 138.2% increase year-over-year.

• All major segments saw revenue growth, with Optronics and Industrial Tape delivering significant operating profit gains.

• Yen depreciation contributed ¥11.3 billion to operating profit.

• Basic EPS increased to ¥257.27 from ¥105.52 year-over-year.

Financial highlights

• Operating profit margin improved to 20.3% from 10.8% year-over-year.

• Gross profit increased to ¥98.5 billion from ¥66.1 billion year-over-year.

• Cash and cash equivalents at period end increased to ¥315.8 billion.

• Free cash flow improved to -¥0.6 billion from -¥3.3 billion in the prior year.

• Total assets reached ¥1,304.3 billion, up from ¥1,251.1 billion at the end of March 2024.

Outlook and guidance

• FY2025 revenue forecast is ¥982.0 billion, up 7.3% year-over-year.

• Operating profit projected at ¥180.0 billion, a 29.4% increase year-over-year.

• Net profit attributable to owners expected to reach ¥130.0 billion, up 26.6%.

• Basic EPS forecast (post-stock split) is ¥185.14 for the full year.

• Interim dividend forecast is ¥28 per share, with a 5-for-1 stock split effective October 1, 2024.