Oji Holdings (3861) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 rose 8.9% year-over-year to ¥922.9B, with overseas sales ratio increasing to 40.9% from 34.4%.

• Operating profit declined 4.1% to ¥37.2B due to higher costs, despite cost reduction efforts.

• Profit attributable to owners of parent fell to ¥24.2B, down 23.4% year-over-year, impacted by lower FX gains and increased costs.

• Walki Holding Oy and 20 affiliates newly consolidated, expanding the European packaging platform.

• Company is advancing sustainable growth initiatives, including wood bio-businesses and eco-friendly packaging.

Financial highlights

• Net sales: ¥922.9B (+8.9% YoY); operating profit: ¥37.2B (−4.1% YoY); ordinary profit: ¥39.4B (−22.5% YoY); profit attributable to owners: ¥24.2B (−23.4% YoY).

• Gross profit increased to ¥178.95B; comprehensive income rose 16.9% YoY to ¥107.2B.

• EPS: ¥24.61 (down from ¥31.92 YoY); net assets: ¥1,194.6B (+¥99.0B).

• Depreciation for 1H FY2024: ¥41.2B; overseas sales ratio up 6.5pt to 40.9%.

• Number of consolidated companies increased to 218, mainly due to overseas expansion.

Outlook and guidance

• FY2024 net sales forecast revised to ¥1,877.0B (−3.7% from previous), operating profit to ¥70.0B (−26.3%), profit attributable to owners to ¥57.0B (−24.0%).

• Overseas sales ratio expected at 40.7%; assumed 2H exchange rate: 155 JPY/USD.

• Dividend maintained at ¥24/share, with payout ratio target of 30%.