ARE Holdings (5857) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY2025.3 reached 240.4 billion yen, up 96.1 billion yen year-over-year, with operating profit at 8.3 billion yen, an increase of 2.6 billion yen compared to the same period last year.

• Revenue for the six months ended September 30, 2024, was ¥240,357 million, up 66.7% year-over-year, with operating profit at ¥8,317 million (+45.9%) and profit attributable to owners at ¥6,604 million (+25.6%).

• Growth was driven by higher gold prices, increased collection volumes in the jewelry sector, and the inclusion of equity method investment gain from RENATUS Co., Ltd.

• The company achieved a 133.5% progress rate against its six-month revenue plan and 97.9% for operating profit.

Financial highlights

• Net profit attributable to owners of parent was 6.6 billion yen, up 1.3 billion yen year-over-year.

• Gross profit rose to ¥11,650 million from ¥9,732 million year-over-year.

• Basic earnings per share increased to ¥86.41 from ¥68.62 year-over-year.

• Precious Metals Business revenue was 240.3 billion yen (up 96.1 billion yen YoY), with operating profit at 7.5 billion yen (up 1.6 billion yen YoY).

• Cash and cash equivalents increased by ¥12,496 million to ¥19,377 million.

Outlook and guidance

• Full-year revenue forecast is 480.0 billion yen, with operating profit projected at 18.0 billion yen.

• Profit attributable to owners of parent forecast at ¥13,148 million, basic EPS at ¥172.53.

• Dividend payout ratio for FY2025.3 is expected to be 54.0%, including share buybacks.

• No changes in dividend forecast: annual dividend expected at ¥80.00 per share.