Kikkoman (2801) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 10.2% year-over-year to ¥355.6 billion, with strong growth in both Japan and overseas markets.

• Business profit increased 11.7% year-over-year to ¥42.6 billion, driven by overseas performance.

• Operating profit grew 25.4% year-over-year to ¥42.0 billion; profit attributable to owners of parent rose 20.6% to ¥34.8 billion.

• Medium-term plan targets 3-year CAGR of 5%+ for sales, business profit margin of 10%+, and ROE of 11%+ by FY2025.

Financial highlights

• H1 FY2025 overseas revenue reached ¥275.7 billion (+11.9% YoY); Japan revenue was ¥83.2 billion (+5.2% YoY).

• Gross profit rose to ¥122.5 billion from ¥112.8 billion YoY; basic EPS for H1 was ¥36.52 post-split.

• Full-year FY2025 forecast: revenue ¥695.7 billion (+5.3% YoY), business profit ¥76.9 billion (+4.8% YoY), profit attributable to owners of parent ¥61.5 billion (+9.0% YoY).

• Total assets as of September 30, 2024, were ¥656.5 billion, with equity ratio at 75.1%.

• Total comprehensive income dropped to ¥15.8 billion from ¥67.4 billion due to negative currency translation.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥695.7 billion, profit attributable to owners of parent projected at ¥61.5 billion.

• Basic EPS for the year expected at ¥64.62, reflecting improved profitability.

• H2 FY2025 assumes exchange rates of 140 yen/USD and 155 yen/EUR.

• Raw material prices in Japan expected to continue rising in H2; no new product price revisions planned.

• Forecast revision driven by strong H1 results and favorable foreign exchange rates.