Casio Computer Co (6952) Q2 2025 earnings summary

Executive summary

• Net sales for the first half rose 2.5% year-on-year to ¥136.9 billion, with operating profit up 26.5% to ¥10.3 billion, driven by strong Timepiece and EdTech businesses outside China.

• Profit attributable to owners of parent dropped about 50% year-on-year to ¥3.6 billion, impacted by extraordinary losses from structural reforms and a ransomware attack.

• Structural reforms progressed as planned, including significant personnel optimization, early retirement, and cost reductions.

• Comprehensive income turned negative at ¥(1,888) million, compared to ¥15,527 million in the prior year period.

Financial highlights

• First-half operating profit margin was 7.6%; net profit was ¥3.6 billion, impacted by ¥9.4 billion in extraordinary losses.

• Second-quarter net sales were ¥71.7 billion, up 1.2% year-on-year; operating profit was ¥5.8 billion, up 51% year-on-year, but net loss was ¥2.6 billion due to extraordinary items.

• Basic earnings per share for the first half was ¥15.58, down from ¥30.79 year-on-year.

• Cash and cash equivalents at period end increased to ¥145.2 billion.

Outlook and guidance

• Full-year FY2025 net sales forecast revised to ¥262.0 billion (down from ¥275.0 billion), operating profit at ¥14.0 billion (down from ¥16.0 billion), reflecting ransomware impact.

• Profit attributable to owners of parent expected to decline 32.8% to ¥8.0 billion; EPS forecast at ¥34.94.

• No residual impact from the system failure is expected in the fourth quarter; dividend forecast is yet to be determined.