KOSÉ (4922) Q2 2025 earnings summary

Executive summary

• Net sales for 1H 2025 rose 0.9% year-over-year to ¥160.5 billion, with overseas sales comprising 34.7% of the total, driven by strong growth in Japan but offset by declines in Greater China and Tarte's performance in North America and Europe.

• Operating profit fell 17.7% year-over-year to ¥11.3 billion, mainly due to increased SG&A expenses, including goodwill amortization from PURI and higher logistics costs at Tarte.

• Profit attributable to owners dropped 38.9% year-over-year to ¥7.0 billion, impacted by foreign exchange losses from yen appreciation and lower extraordinary gains.

• Comprehensive income fell 86.7% year-over-year to ¥2,341 million.

Financial highlights

• Gross profit increased slightly to ¥113.2 billion, but SG&A expenses rose by ¥2.9 billion, mainly from selling and administrative costs.

• Ordinary profit declined 49.1% year-over-year to ¥9.6 billion, mainly due to foreign exchange losses.

• Net income per share decreased from 203.47 yen to 124.36 yen year-over-year.

• Capital expenditures for 1H 2025 were ¥13.4 billion, up from ¥5.6 billion in 1H 2024.

• Total assets decreased to ¥368.3 billion from ¥386.8 billion at year-end 2024.

Outlook and guidance

• No revision to the 2025 full-year outlook: net sales projected at ¥336.0 billion (+4.1% YoY), operating profit at ¥20.0 billion (+15.2% YoY), and profit attributable to owners at ¥13.8 billion (+83.7% YoY).

• Strong sales in Japan expected to offset shortfalls in Tarte and Asia.

• Dividend for 2025 maintained at ¥140 per share.

• No revisions to the previously announced full-year forecast.