Ochi Holdings (3166) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, rose 0.6% year-over-year to ¥56,972 million, driven by corporate acquisitions despite a challenging housing market and weak plywood demand.

• Operating profit dropped 44.2% year-over-year to ¥692 million, impacted by lower gross profit, weather-related construction delays, higher SG&A expenses, and acquisition-related costs.

• Profit attributable to owners of parent fell 47.9% year-over-year to ¥511 million.

• Comprehensive income declined 59.6% year-over-year to ¥458 million.

Financial highlights

• Net sales: ¥56,972 million (+0.6% YoY), but 8.1% below plan.

• Operating profit: ¥692 million (-44.2% YoY, -50.5% vs. plan).

• Profit attributable to owners of parent: ¥511 million (-47.9% YoY, -51.3% vs. plan).

• Gross profit was ¥7,892 million, nearly flat year-over-year, but SG&A expenses rose due to inflation and acquisition-related costs.

• Basic earnings per share decreased to ¥39.43 from ¥75.96 a year earlier.

Outlook and guidance

• FY2025 forecast: Net sales ¥115,000 million (+1.4% YoY), operating profit ¥1,500 million (-30.4% YoY), ordinary profit ¥2,100 million (-23.1% YoY), profit attributable to owners of parent ¥1,150 million (-45.1% YoY), EPS ¥88.65.

• Return on equity expected to decrease from 9.3% to 4.8%.

• Annual dividend forecast unchanged at ¥54 per share.