Honyaku Center (2483) Q2 2025 earnings summary

Executive summary

• 1H FY3/25 net sales rose 0.6% YoY to ¥5,467 million and operating income increased 0.4% to ¥352 million, with strong Interpretation Business growth offsetting modest Translation Business growth.

• Ordinary income fell 2.4% to ¥355 million, mainly due to lower equity-method investment income; net income attributable to shareholders declined 2.0% to ¥232 million.

Financial highlights

• Gross profit was ¥2,581 million, up 1.0% YoY; SG&A rose 1.1% to ¥2,229 million and cost of sales increased 0.4% to ¥2,886 million.

• Net income per share was ¥69.41 versus ¥70.97 in the prior year; comprehensive income was ¥248 million, nearly flat YoY.

• Cash and cash equivalents at period-end were ¥4,587 million, up ¥97 million from the previous fiscal year-end.

Outlook and guidance

• FY3/25 forecast remains unchanged: net sales ¥12,100 million (+7.0%), operating income ¥1,050 million (+16.3%), ordinary income ¥1,080 million (+15.0%), net income ¥720 million (+1.2%) and EPS ¥215.07.

• Forecast gross margin is 47.9%, up 0.9 percentage points YoY; translation revenue is forecast at ¥9,240 million, up 9.2%.

• FY3/25 mid-term plan targets include operating margin of 8.6% and ROE of 12.0%.