Nagase reports mixed Q1 2025 results as net profit rises despite sales dip

For the three months ended June 30, 2025, Nagase & Co., Ltd. reported consolidated net sales of 237,314 million yen, a 0.8% decrease year-on-year. Despite this, gross profit increased by 0.4% to 44,331 million yen. Operating income, however, fell 4.5% to 10,249 million yen, and ordinary income decreased by 2.6% to 10,662 million yen. Profit attributable to owners of the parent saw a modest increase of 1.2% to 7,507 million yen.

The company's financial position showed total assets at 811,598 million yen as of June 30, 2025, a 0.4% increase from March 31, 2025. Net assets decreased by 1.9% to 398,715 million yen, leading to a shareholders' equity ratio of 48.2%, a 1.2 percentage point decrease from the end of the prior fiscal year. Earnings per share for the quarter were 69.62 yen.

Cash flows from operating activities significantly improved, moving from a negative 3,074 million yen in Q1 2024 to a positive 703 million yen in Q1 2025. This was driven by income before income taxes and depreciation, partially offset by increased working capital and tax payments. The company also announced the acquisition and cancellation of treasury stock.