Far Eastern New Century (1402) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for 1H25 was NT$123.8B, with year-over-year declines attributed to production suspension and softer market demand.

• Net income attributable to shareholders for 1H25 was NT$3.3B, a 67% decrease year-over-year, while another report notes NT$7.66B, a 17% decrease.

• Green revenue accounted for 22% of consolidated revenue in 1H25, reflecting a strategic focus on sustainability.

• Gross profit margin improved to 22% from 20% year-over-year, but operating income margin remained at 8%.

• Dividend payments have been maintained for 57 consecutive years, with a payout ratio above 80%.

Financial highlights

• 2Q25 revenue was NT$60.1B, down 11% year-over-year; profit from operations fell 26% to NT$3.6B.

• EPS for 1H25 was NT$0.66, compared to NT$2.00 for full-year 2024 and NT$1.01 in the prior year.

• EBITDA for 2024 was NT$10.7B, with capital expenditure at NT$7.8B.

• Net cash generated from operating activities was NT$17.87B, slightly up year-over-year.

• Cash and cash equivalents at period end were NT$38.92B.

Outlook and guidance

• Operations at the suspended production site have gradually resumed through phased trial runs starting in 2Q25.

• Regulatory trends in major markets are expected to drive further demand for recycled PET (R-PET) products.

• The company targets 50% of total production and sourcing to be green by 2030, with a 50% reduction in GHG emissions.

• Management is monitoring the impact of new IFRS standards effective in 2026 and 2027.

• The board approved issuance of up to NT$8B in new unsecured bonds and a NT$300M investment in entertainment content.