EPCO FY25 Q1 sales rise, profit declines amid investment

EPCO (TSE:2311) reported increased sales but a decline in profit for the first quarter of FY2025. Net sales grew 10.3% year-over-year to JPY1.493 billion, driven primarily by the company's renewable energy solutions segment. However, ordinary profit decreased by 23.4% to JPY32 million, reflecting increased advertising expenses related to TEPCO HomeTech. Net profit saw a significant increase of 183.2% to JPY52 million, boosted by gains from sales of investment securities. The company noted that all profit measures exceeded forecasts. EPCO is actively pursuing a "Challenge for Change" strategy focusing on carbon neutrality and digital transformation (DX). EPCO reaffirmed its commitment to shareholder returns, maintaining its dividend policy of stable profit sharing with a consolidated dividend payout ratio of 50% and a dividend on equity ratio (DOE) of 8%.