Nitto Denko (6988) Q2 2025 earnings summary

Executive summary

• Revenue for 1H FY2024 reached ¥521.7B (+16.1% YoY), operating profit ¥109.3B (+69.5% YoY), and net profit attributable to owners ¥80.0B (+80.9% YoY).

• All major segments—Industrial Tape, Optronics, and Human Life—saw revenue and operating profit growth; Optronics led with a 24.6% revenue increase.

• Basic earnings per share for the period was ¥113.92, reflecting the October 1, 2024 stock split.

• Positive foreign exchange impact contributed ¥17.1B to operating profit.

• Total comprehensive income declined 36.6% YoY to ¥57.7B due to negative other comprehensive income.

Financial highlights

• Operating profit margin improved to 20.9% from 14.3% YoY.

• Free cash flow increased to ¥39.2B in 1H FY2024 from ¥18.3B YoY.

• Cash and cash equivalents at period end rose to ¥340.3B.

• Gross profit increased to ¥209.2B from ¥157.4B YoY, with gross margin improvement.

• Total assets grew to ¥1,292.7B as of September 30, 2024, with equity attributable to owners at ¥1,008.4B.

Outlook and guidance

• FY2024/FY2025 revenue forecast is ¥982.0B (+7.3% YoY), with operating profit projected at ¥180.0B (+29.4% YoY) and net profit at ¥130.0B (+26.6% YoY).

• Basic EPS forecast for FY2025 is ¥185.14 (post-split basis).

• Operating profit margin expected to rise to 18.3% for FY2024.