Maxell (6810) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales were ¥63,122 million, operating profit ¥4,177 million and profit attributable to owners of parent ¥3,085 million, down 3.8%, 8.5% and 37.5% YoY, respectively.

• Primary batteries, adhesive tapes and health & beauty care supported results, while rechargeable batteries, automotive optical components, semiconductor-related products and licensing revenue weakened.

Financial highlights

• Sales fell ¥2.5bn YoY; volume was a ¥3.9bn headwind, price a ¥1.0bn headwind and FX a ¥2.4bn benefit.

• Operating profit declined ¥0.4bn to ¥4.2bn; lower quantity and material costs were partly offset by price, FX and cost-reduction effects.

• Ordinary profit fell 35.6% to ¥3,865 million, including foreign-exchange losses; net profit was ¥3,085 million versus ¥4,934 million.

• Gross profit rose to ¥16,095 million from ¥14,908 million, while SG&A increased to ¥11,918 million from ¥10,342 million; overseas sales rose 3.3% to ¥32,460 million and domestic sales fell 10.3% to ¥30,662 million.

Outlook and guidance

• FY2025 forecast revised to net sales ¥126,000 million, operating profit ¥8,000 million and parent profit ¥6,000 million; sales cut ¥2,000 million from prior forecast, with profit targets unchanged.

• Forecast USD exchange rate raised to ¥148 from ¥145; operating profit target supported by portfolio reform and cost reductions.

• Outlook assumes continued weakness in automotive optical components, semiconductor customer inventory adjustments through 4Q and further rechargeable battery order declines; medical-device primary batteries and semiconductor manufacturing tapes are expected to remain strong.

• FY2025 capital investment forecast is ¥8,000 million, depreciation ¥5,500 million and R&D expenses ¥6,000 million.