Daiken's FY2025 sales up marginally, profits decline amid cost pressures

Daiken (TSE:5900) reported FY2025 (ended February 28, 2025) revenues of JPY11.02 billion, a 1.3% increase year-over-year, while operating profit declined 34.1% to JPY295 million and net profit decreased 25.1% to JPY246 million. The company cited rising raw material prices, labor costs and logistics expenses as headwinds. Despite increased revenues, the decline in profitability led to a decrease in return on equity from 2.6% to 1.9%. Looking ahead to FY2026, Daiken expects revenues of JPY12 billion, operating profit of JPY500 million, and net profit of JPY300 million. The company forecasts a year-end dividend of JPY20 per share. Based on Daiken's financial position, at the end of FY2025, total assets are JPY15.78 billion, and net assets are JPY13.21 billion.