Japanese firm swings to ¥1.6 billion loss as net sales drop 13%; full-year guidance held with modest growth in operating income forecast.
Oki Electric Industry has reported a loss for the first quarter of fiscal 2025 as lower demand, foreign exchange losses, and a decline in sales across core businesses weighed on performance. The Tokyo-listed electronics and printing group posted a loss attributable to owners of the parent of ¥1.64 billion ($11.3 million /€10.3 million) for the quarter ending 30 June 2025, compared to a profit of ¥1.81 billion a year earlier.
Revenue fell 13.1% year-on-year to ¥85.08 billion ($586 million /€535 million), down from ¥97.94 billion, with gross profit falling by nearly ¥6.4 billion. The company reported an operating loss of ¥1.37 billion ($9.4 million /€8.6 million), reversing last year’s ¥3.86 billion profit.
The downturn was attributed to a mix of lower hardware shipments, supply-side delays, and unfavourable currency movements. While interest and dividend income were up slightly, the company took a hit on exchange losses and lower margins, particularly in overseas markets.
Comprehensive income dropped to a negative ¥1.36 billion ($9.4 million /€8.2 million), from a positive ¥1.23 billion in Q1 2024. Net assets declined by over ¥5 billion during the quarter, while cash and equivalents fell to ¥31.1 billion ($214 million /€195 million).
Despite the challenging quarter, OKI maintained its full-year forecast. It expects revenue for the fiscal year ending 31 March 2026 to reach ¥450 billion ($3.1 billion /€2.8 billion), essentially flat year-on-year. Full-year operating income is projected to rise 2% to ¥19 billion ($131 million /€120 million), with profit attributable to owners of the parent increasing by 12% to ¥14 billion ($96 million /€88 million).
Shareholders are expected to receive an increased dividend of ¥50 per share for the full year, up from ¥45 last year.
OKI did not provide a detailed breakdown of segment performance in this update, though previous results indicate its printer business has been under margin pressure amid intense competition and rising component costs. Foreign exchange volatility also played a role in eroding profits, as seen in the ¥459 million FX loss recorded in Q1.
With a reduced inventory base and ongoing restructuring efforts, the group will be hoping that currency markets stabilise and that postponed customer spending returns later in the year. Management said it remained committed to its medium-term targets, including margin expansion and increased software-service integration.
Unlike some rivals, OKI did not provide a segment-level breakdown or forecast for its key business areas, including printers, in this update. The company typically withholds such detail until the mid-year results or investor briefings. With Q1 marked by foreign exchange volatility and delayed customer spending, analysts expect more clarity on individual business unit performance in the second half of the year.
