Taiheiyo Cement (5233) Q1 2027 earnings summary

Executive summary

• Achieved year-over-year increases in revenue and profit for Q1 FY2027, with net sales up 5.1% to ¥221,919 million, operating profit up 13.9% to ¥11,462 million, and profit attributable to owners up 22.3% to ¥8,346 million, driven by price hikes and improved subsidiary earnings.

• Comprehensive income improved to ¥10,000 million from a loss of ¥12,352 million in the prior year period.

• Domestic cement operating profit rose despite lower sales volume, supported by higher prices and subsidiary performance, while overseas subsidiaries saw profit growth, especially in Vietnam and the Philippines.

• The Japanese economy showed moderate recovery, but domestic cement demand declined due to high construction costs and labor shortages, partially offset by earthquake recovery projects.

Financial highlights

• Q1 FY2027 net sales: ¥221,919 million (+¥10,728 million YoY); operating profit: ¥11,462 million (+¥1,402 million YoY); ordinary profit: ¥12,309 million (+¥2,315 million YoY); profit attributable to owners: ¥8,346 million (+¥1,524 million YoY).

• Gross profit increased to ¥50,324 million from ¥46,460 million YoY.

• Basic EPS increased to ¥75.7 from ¥61.2 YoY.

• Operating profit to net sales ratio improved to 5.2% from 4.8% YoY.

• Total assets grew to ¥1,590,007 million, up ¥110,945 million from March 31, 2026.

Outlook and guidance

• FY2027 forecast unchanged: net sales ¥1,027 billion, operating profit ¥76 billion, profit attributable to owners ¥63 billion.

• Dividend forecast for FY2027 is ¥120/share, up from ¥100 in the previous year.

• Overseas profit growth expected from U.S. acquisitions and improved performance in the Philippines, while domestic cement sales are expected to rise due to business rights acquisition but profit may decline on higher costs.

• Impact from Middle East situation assumed to persist through FY2027.

• No changes to previously announced financial forecasts.