Byhealth (300146) Q2 2025 earnings summary

Executive summary

• Operating income for H1 2025 was ¥3.53 billion, down 23.43% year-over-year; net profit attributable to shareholders was ¥737 million, down 17.34% year-over-year.

• Main brands and channels saw double-digit revenue declines, with offline revenue down 31.63% and online down 13.78% year-over-year.

• The company focused on product innovation, digital transformation, and cost control to mitigate challenging market conditions.

• No interim dividend or share capital conversion was proposed for the first half of 2025.

Financial highlights

• Gross margin for main business was 69.51%, up 0.35 percentage points year-over-year.

• Net cash flow from operating activities increased 118.12% year-over-year to ¥642 million.

• R&D expenses decreased 56.45% year-over-year due to supplier refunds.

• Sales expenses fell 32.33% year-over-year, mainly from reduced advertising and cost controls.

• Basic and diluted EPS were both ¥0.43, down 17.31% year-over-year.

Outlook and guidance

• The company will continue to focus on technological innovation, digitalization, and omnichannel efficiency.

• Investment in international expansion and infant & child nutrition segments will be accelerated.

• Cautious approach to fixed asset investment and project progress due to slower-than-expected business growth.