Leopalace21 (8848) Q2 2025 earnings summary

Executive summary

• H1 net sales were JPY 222,010 million, up 2.7% year over year; operating profit rose 15.0% to JPY 20,048 million and recurring profit rose 13.7% to JPY 19,027 million.

• H1 results exceeded the revised plan across reported profit measures; net income was 37.6% above plan.

• Net income fell 55.9% to JPY 4,678 million, including JPY 10,068 million in extraordinary losses from cancelling treasury stock acquisition rights.

• Higher unit rents and corporate leasing demand supported results; full-year forecasts were raised and a JPY 10 per-share dividend is planned.

Financial highlights

• Gross profit rose 16.1% to JPY 46.5bn; gross margin improved to 21.0% from 18.5%, and operating margin increased to 9.0% from 8.1%.

• EBITDA increased 12.4% to JPY 21,655 million.

• Free cash flow was JPY 18,430 million, up JPY 8,520 million year over year.

• Cash and cash equivalents were JPY 39,347 million at period-end; the equity ratio was 18.6%, down 18.9 points from fiscal year-end.

Outlook and guidance

• Full-year forecast: net sales JPY 444.1bn, operating profit JPY 34.8bn, recurring profit JPY 33.0bn and net income JPY 13.0bn.

• Versus previous guidance, forecasts rose 0.6% for sales, 7.4% for operating profit and 12.1% for net income; forecast EPS is JPY 37.80.

• H1 development orders reached JPY 7.581bn, or 75.8% of the JPY 10.0bn full-year target.