F&M Co. (4771) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY2025 increased 5.6% year-over-year to ¥7,133 million, driven by steady growth in membership across all segments.

• Operating income declined 33.4% year-over-year to ¥625 million due to higher outsourcing, personnel, and depreciation costs.

• Net income attributable to shareholders was ¥404 million, down 36.1% year-over-year.

• Profit margins contracted due to increased costs and decreased profitability in key segments.

• Announced strategic collaborations with MUFG Bank and a capital/business alliance with Yayoi Co., Ltd. to strengthen SME support.

Financial highlights

• Gross profit rose 4.9% year-over-year to ¥4,715 million, with a gross margin of 66.1%.

• EPS for Q2 was ¥27.65–¥27.71, down from ¥33.92–¥43.46 in the prior year.

• EBITDA was ¥1,390 million, a 9.9% decrease year-over-year; EBITDA margin was 19.5%.

• Operating margin declined to 8.8% from 13.9% year-over-year.

• Interim dividend increased to ¥20 per share, with full-year forecast at ¥40 per share.

Outlook and guidance

• Full-year revenue guidance is ¥16,680 million, with operating income forecast at ¥1,812 million.

• Net profit for the year is projected at ¥1,358 million (up 15.6%).

• No revision to previously announced earnings guidance.

• Some subsidy-related sales were delayed to Q3 due to timing of government announcements.