KOA Corporation (6999) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales fell 4.9% YoY to ¥31,894m; operating profit declined 67.3% to ¥474m.

• Ordinary loss was ¥167m, versus ¥2,298m profit a year earlier, including ¥1,103m in foreign-exchange losses.

• Loss attributable to owners of parent was ¥572m, compared with prior-year profit of ¥1,522m.

Financial highlights

• H1 gross profit was ¥9,082m versus ¥9,557m; SG&A was ¥8,607m versus ¥8,106m.

• Q2 revenue was ¥15.68bn, down 5.3% YoY and 3.3% QoQ; operating profit was ¥240m, down 58.3% YoY but up 6.1% QoQ.

• Comprehensive income fell 74.4% YoY to ¥1,001m; cash and cash equivalents at period-end were ¥31,691m.

• Operating cash flow was ¥2,810m, investing cash flow was -¥13,206m, and financing cash flow was ¥12,329m.

• September 2024 total assets were ¥141.628bn and net assets were ¥78.682bn.

Outlook and guidance

• FY2025 sales forecast was cut to ¥62.8bn from ¥71.9bn and operating profit to ¥1.15bn from ¥3.9bn; forecast operating margin fell to 1.8% from 5.4%.

• Full-year ordinary profit was forecast at ¥830m and profit attributable to owners of parent at ¥80m; the dividend forecast was ¥40 per share, including ¥25 interim.

• Persistent inflation and high interest rates weigh on US and European auto sales, while prolonged Asian customer inventory adjustments delay demand recovery into FY2025.

• H2 measures include fixed-cost reductions and cost controls; planned capex remains ¥53.4bn. The FY2025–FY2027 mid-term plan is scheduled for March 2025.