Merida Industry (9914) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025 was NT$14.57 billion, down 4% year-over-year; net profit attributable to owners was NT$812.5 million, a 24% decrease from the prior year.

• Gross margin for the period was 16%, compared to 20% in the same period last year, reflecting higher cost of goods sold and inventory write-downs.

• Total comprehensive income turned negative at NT$(435.8) million, mainly due to significant foreign currency translation losses.

Financial highlights

• Operating income for the six months was NT$1.31 billion, down 21% year-over-year.

• Earnings per share (EPS) for the six months was NT$2.72 (basic), compared to NT$3.58 in the prior year.

• Cash and cash equivalents at June 30, 2025 were NT$3.42 billion, down from NT$4.15 billion a year earlier.

• Net cash from operating activities was NT$1.32 billion, a 43% decrease year-over-year.

• Inventory at period end was NT$8.70 billion, down 20% from June 2024.

Outlook and guidance

• Management is monitoring the impact of new IFRS standards effective in 2026 and 2027, with ongoing assessment of potential effects on financial reporting.

• The company continues to focus on optimizing its capital structure and balancing debt and equity to maximize shareholder returns.