Crops Corporation (9428) Q2 2025 earnings summary

Executive summary

• Revenue rose 12.5% YoY to ¥29,211 million, driven by mobile communications, store subleasing, and real estate sales.

• Operating profit fell 26.0% to ¥795 million, mainly due to higher mobile communications store operating costs.

• Net income attributable to owners declined 81.9% to ¥108 million, mainly due to employee fraud losses at an overseas subsidiary.

• Full-year operating profit guidance increased 15%, supported by stronger store leasing and real estate sales.

Financial highlights

• H1 ordinary profit declined 17.3% YoY to ¥1,002 million; gross profit rose to ¥7,209 million from ¥6,747 million.

• Versus the H1 plan, revenue was 0.6% higher, operating profit 40.7% higher, and ordinary profit 58.3% higher; net income was profitable versus a planned ¥9 million loss.

• Comprehensive income fell 63.5% to ¥327 million; EPS was ¥11.52, down from ¥63.56.

• Period-end cash and equivalents were ¥8,079 million, up ¥607 million from the previous year-end.

Outlook and guidance

• FY24 revenue forecast was revised to ¥60,852 million, up 11.7% YoY and 0.3% below the prior plan.

• FY24 operating profit forecast rose to ¥2,481 million, up 16.6% YoY and 14.9% versus the prior plan, an increase of ¥300 million.

• FY24 ordinary profit is forecast at ¥2,599 million, up 12.2% YoY and 13.4% versus plan; net income is forecast at ¥1,037 million, down 14.0% YoY and up 13.2% versus plan.

• Mobile communications forecasts remain at ¥25,749 million revenue and ¥525 million operating profit, up 10.3% and 15.3% YoY, respectively.

• Annual dividend forecast remains ¥20 per share.