REGAL, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 18% Decrease, Dividend Revised down by 40 yen

Mon Feb 10, 2025 3:30 pm JST

REGAL CORPORATION <7938> [TSE Std] announced its financial results after the market closed on February 10th (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) significantly dropped 71.9% from the same period last year to 0.05 billion yen.

In addition, the full-year consolidated ordinary profit has decreased 51.1%, from the previous forecast of 0.9 billion yen to 0.44 billion yen (compared to 0.53 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 17.9% decrease in profit.

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 45.5%, from the previous forecast of 1.01 billion yen to 0.55 billion yen (compared to 0.78 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 29.6% decrease in profit.

Due to a decline in performance, the company has significantly reduced its planned year-end lump-sum dividend for the current fiscal year from the original plan of 110 yen to 70 yen (compared to 68 yen in the previous period).

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit significantly dropped to 0.16 billion yen, a 62.2% decrease compared to the same period last year. The operating profit margin drastically worsened from 6.5% in the same period last year to 3.3%.

Kabutan News

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	16,131	133	280	457	143.2	69.8	Feb 8, 2023	J-GAAP
Apr - Dec, 2023	16,508	89	178	101	31.7	33.2	Feb 8, 2024	J-GAAP
Apr - Dec, 2024	16,535	-23	50	99	31.1	11.4	Feb 10, 2025	J-GAAP
YoY	+0.2%	－	-71.9%	-2.0%	-1.7%

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	14,700	1,131	1,010	770	245.9	110	Nov 8, 2024	J-GAAP
Oct - Mar, 2024 New	13,200	601	550	710	226.8	70	Feb 10, 2025	J-GAAP
Revision Rate	-10.2%	-46.9%	-45.5%	-7.8%	-7.8%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	25,000	900	900	700	223.6	110	May 13, 2024	J-GAAP
Mar, 2025 New	23,500	370	440	640	204.4	70	Feb 10, 2025	J-GAAP
Revision Rate	-6.0%	-58.9%	-51.1%	-8.6%	-8.6%

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	13,547	837	781	617	193.5	68	May 13, 2024	J-GAAP
Oct - Mar, 2024 Guidance	13,200	601	550	710	226.8	70	Feb 10, 2025	J-GAAP
YoY	-2.6%	-28.2%	-29.6%	+15.1%	+17.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	22,561	293	401	491	153.8	50	May 12, 2023	J-GAAP
Mar, 2024	23,731	518	536	427	133.9	68	May 13, 2024	J-GAAP
Mar, 2025 Guidance	23,500	370	440	640	204.4	70	Feb 10, 2025	J-GAAP
YoY	-1.0%	-28.6%	-17.9%	+49.9%	+52.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	6,324	408	423	291	91.3	6.5	Feb 8, 2024	J-GAAP
Jan - Mar, 2024	7,223	429	358	326	102.2	5.9	May 13, 2024	J-GAAP
Apr - Jun, 2024	5,193	103	224	209	65.5	2.0	Aug 6, 2024	J-GAAP
Jul - Sep, 2024	5,107	-334	-334	-279	-87.9	-6.5	Nov 8, 2024	J-GAAP
Oct - Dec, 2024	6,235	208	160	169	53.1	3.3	Feb 10, 2025	J-GAAP
YoY	-1.4%	-49.0%	-62.2%	-41.9%	-41.8%