Roland Corporation Reports Q1 FY2025 Sales Rise by 2.1%, Net Income Surges 87.1%
Roland Corporation reported a 2.1% increase in Q1 FY2025 sales, totaling 22.5 billion yen, while net income surged 87.1% to 1.8 billion yen. Operating profit declined by 7.8% to 1.4 billion yen, but grew 8.1% when excluding foreign exchange effects. The company faces challenges from U.S. tariff policies but sees low risk in the industry. It has revised its earnings forecast to a range format while maintaining its dividend forecast, and is exploring market expansion opportunities amid uncertainties.
Roland Corporation has reported its financial results for the first quarter of the fiscal year 2025. The company's sales reached 22.5 billion yen, marking a 2.1% increase year-over-year. Operating profit, however, saw a decline of 7.8% from the previous year, totaling 1.4 billion yen. When excluding the effects of foreign exchange, operating profit showed a growth of 8.1% year-over-year despite increased selling, general, and administrative expenses. Net income attributable to owners of the parent experienced a significant rise, reaching 1.8 billion yen, which is an 87.1% increase compared to the same period last year. This substantial growth in net income is attributed to temporary timing differences in tax expenses, with no expected impact on the full-year results. The company has noted that its Q1 sales performance was in line with internal plans, although there were variations in performance across different regions and categories. In terms of market conditions, Roland Corporation highlighted the impact of unexpected U.S. tariff policies that are causing confusion within the musical instrument industry. Despite these challenges, the company views itself as having a relatively low risk within the industry and is exploring opportunities to expand its market share. Roland Corporation is currently implementing both "offense" and "defensive" measures to navigate these uncertainties. Due to the unpredictable nature of the situation, the company has revised its earnings forecast to a range format, though the dividend forecast remains unchanged. The company is committed to closely monitoring the situation and will adjust its forecast as necessary.
