Lion Corporation (4912) Q2 2025 earnings summary

Executive summary

• Achieved year-on-year revenue growth and improved profitability in the first half, with core operating income up 32.3% to ¥12,639 million, significantly exceeding initial forecasts due to structural reforms, high value-added initiatives, and strategic investments.

• Profit attributable to owners declined 3.2% year-on-year to ¥9,609 million, mainly due to the absence of prior year’s one-time gain from brand transfer and foreign exchange losses.

• The period marks the start of a new three-year medium-term plan, focusing on profitability, business portfolio management, and overseas expansion, including the acquisition of a Vietnamese affiliate.

• Overseas sales, especially in Thailand, Malaysia, and Vietnam, increased, while Consumer Products also saw sales growth excluding brand transfer impacts.

Financial highlights

• Net sales reached ¥199,459 million (+0.4% year-on-year); underlying growth was 1.1% excluding exchange rate and brand transfer impacts.

• Core operating income rose to ¥12,639 million (+32.3% year-on-year); operating profit nearly flat at ¥13,379 million (+0.2%).

• EBITDA increased to ¥21,400 million (+14.6% year-on-year); EBITDA margin improved by 1.3 points to 10.7%.

• Profit attributable to owners: ¥9,609 million (-3.2% year-on-year); EPS: ¥34.75 (down 2.8%).

• Total assets at June 30, 2025: ¥468,808 million; equity ratio improved to 63.1%.

Outlook and guidance

• Full-year 2025 forecast unchanged: net sales ¥420,000 million (+1.7%), core operating income ¥30,000 million (+13.9%), profit attributable to owners ¥25,000 million (+17.9%), and basic EPS ¥90.24.

• Dividend forecast for 2025: ¥30 per share (up from ¥27 in 2024), marking the 10th consecutive year of increases.

• Second half will focus on product launches, marketing investments, and expanding high-end oral healthcare offerings.

• Overseas growth, especially in Vietnam, Thailand, and Malaysia, is expected to offset weaker performance in China and South Korea.

• Risks from China’s economic slowdown are expected to have a minor impact on consolidated results.