TOWA, The Current Fiscal Year Ordinary Profit Revised Downward by 23%

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Thu Feb 6, 2025 3:30 pm JST Earnings

6315 TOWA CORPORATION 【J-GAAP】

Earnings Report

TOWA CORPORATION <6315> [TSE Prime] announced its financial results after the market closed on February 6th (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) expanded 7.08 billion yen, an increase 64.0% compared to the same period last year.

However, the full-year consolidated ordinary profit has decreased 22.5%, from the previous forecast of 12.6 billion yen to 9.76 billion yen (compared to 9.07 billion yen in the previous period), leading to a reduction in the profit growth rate from 38.8% to 7.5%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the October to March period (2H) has decreased 38.5%, from the previous forecast of 7.37 billion yen to 4.53 billion yen (compared to 6.31 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 28.3% decrease in profit.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit grew 19.2% from the same period last year, reaching 1.85 billion yen. However, the operating profit margin significantly dropped from 15.7% in the same period last year to 10.6%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Dec, 2022	40,171	7,513	7,662	5,631	75.1	75.1	Feb 7, 2023	J-GAAP
Apr - Dec, 2023	32,032	4,075	4,318	3,112	41.5	47.6	Feb 7, 2024	J-GAAP
Apr - Dec, 2024	39,259	6,521	7,082	5,152	68.7	72.6	Feb 6, 2025	J-GAAP
YoY	+22.6%	+60.0%	+64.0%	+65.6%	+65.6%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	32,602	7,339	7,371	5,004	66.7	20	Nov 7, 2024	J-GAAP
Oct - Mar, 2024 New	26,602	3,939	4,531	4,044	53.9	20	Feb 6, 2025	J-GAAP
Revision Rate	-18.4%	-46.3%	-38.5%	-19.2%	-19.2%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	60,000	12,600	12,600	8,830	117.7	20	Aug 29, 2024	J-GAAP
Mar, 2025 New	54,000	9,200	9,760	7,870	104.9	20	Feb 6, 2025	J-GAAP
Revision Rate	-10.0%	-27.0%	-22.5%	-10.9%	-10.9%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	29,206	6,273	6,316	4,486	59.8	13.33	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	26,602	3,939	4,531	4,044	53.9	20	Feb 6, 2025	J-GAAP
YoY	-8.9%	-37.2%	-28.3%	-9.9%	-9.8%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	53,822	10,037	10,206	7,346	97.9	13.33	May 11, 2023	J-GAAP
Mar, 2024	50,471	8,661	9,079	6,444	85.9	13.33	May 10, 2024	J-GAAP
Mar, 2025 Guidance	54,000	9,200	9,760	7,870	104.9	20	Feb 6, 2025	J-GAAP
YoY	+7.0%	+6.2%	+7.5%	+22.1%	+22.1%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	10,767	1,687	1,555	1,154	15.4	15.7	Feb 7, 2024	J-GAAP
Jan - Mar, 2024	18,439	4,586	4,761	3,332	44.4	24.9	May 10, 2024	J-GAAP
Apr - Jun, 2024	13,253	2,212	2,420	1,690	22.5	16.7	Aug 8, 2024	J-GAAP
Jul - Sep, 2024	14,145	3,049	2,809	2,136	28.5	21.6	Nov 7, 2024	J-GAAP
Oct - Dec, 2024	11,861	1,260	1,853	1,326	17.7	10.6	Feb 6, 2025	J-GAAP
YoY	+10.2%	-25.3%	+19.2%	+14.9%	+15.0%