K's Holdings (8282) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales rose 2.4% year-over-year to ¥371.4 billion, with operating profit up 9.6% to ¥11.85 billion and profit attributable to owners up 2.5% to ¥8.88 billion; ordinary profit increased 7.3% to ¥13.73 billion.

• Basic earnings per share rose to ¥51.89 from ¥48.25.

• Growth was driven by strong sales in seasonal products, mobile phones, and beauty/health appliances, despite weather disruptions and a high prior-year base for air conditioners.

Financial highlights

• Q2 FY2025 net sales increased 1.0% YoY to ¥198.3 billion; operating profit declined 6.0% YoY to ¥7.67 billion.

• H1 gross profit margin was 27.6% (vs. 27.7% prior year); operating margin improved to 3.2%.

• Gross profit increased to ¥102,572 million from ¥100,613 million YoY; SG&A expenses rose slightly to ¥90,719 million.

• Total assets decreased to ¥413,293 million as of September 30, 2024, from ¥438,199 million at March 31, 2024.

• Net assets declined to ¥262,553 million from ¥269,158 million, with an equity-to-asset ratio of 63.5%.

Outlook and guidance

• FY2025 net sales forecast at ¥735 billion (+2.3% YoY), operating income at ¥20 billion (+6.8% YoY), and profit attributable to owners at ¥12 billion.

• Gross profit margin expected to improve to 27.8% for the full year.

• Annual dividend forecast remains unchanged at ¥44.00 per share.

• No change to previously disclosed FY2025 guidance.