Elecom Co (6750) Q2 2025 earnings summary

Executive summary

• Net sales increased 9.5% year-over-year to ¥56,608 million, driven by strong growth in home appliances, mobile batteries, AC chargers, mice, keyboards, and beauty appliances following M&A activity.

• Operating profit declined 10.7% year-over-year to ¥5,454 million due to higher SG&A expenses, despite improved gross profit from sales growth and price increases.

• Ordinary profit fell 24.6% year-over-year to ¥5,060 million, and net profit attributable to owners dropped 25.4% to ¥3,395 million, impacted by foreign exchange losses and increased personnel and administrative costs.

• Gross profit increased 5.8% year-over-year to ¥21,708 million, supported by price revisions and cost reductions despite a weaker yen.

• Comprehensive income turned negative at -¥842 million, compared to ¥8,680 million in the prior year period, mainly due to foreign exchange impacts.

Financial highlights

• Net sales: ¥56,608 million (+9.5% YoY); Operating profit: ¥5,454 million (-10.7% YoY); Ordinary profit: ¥5,060 million (-24.6% YoY); Net profit attributable to owners: ¥3,395 million (-25.4% YoY).

• Earnings per share: ¥42.76, down from ¥54.18 in the prior year period.

• Gross profit margin decreased to 38.3% from 39.7% YoY, though gross margin improved due to cost management and price revisions.

• ROE (FY03/24): 9.1%, above TSE Prime-listed company averages.

• ROIC (FY03/24): 10.3%, outperforming sector averages.

Outlook and guidance

• Full-year net sales forecast: ¥120,000 million (+8.9% YoY); operating profit: ¥13,400 million (+8.2% YoY); profit attributable to owners: ¥9,650 million (-3.4% YoY); EPS: ¥118.11.

• Dividend per share planned at ¥48 (+¥4 YoY), marking the 15th consecutive annual increase.

• No revisions to previously announced earnings or dividend forecasts.

• Strategic focus on new product launches, leveraging the Shenzhen Technical Center, and expanding sales channels in the second half.