OM2 Network (7614) Q2 2025 earnings summary

Executive summary

• Revenue for the half-year increased to ¥15,926 million, up 1.4% year-over-year.

• Operating income declined to ¥723 million, down 19.5% year-over-year.

• Net income attributable to parent company shareholders was ¥515 million, a decrease of 10.4% year-over-year.

• The business environment remained challenging due to labor shortages, rising personnel and raw material costs, and increased logistics expenses.

• The company focused on sales promotions, customer satisfaction, and operational improvements, including store closures and new store formats.

Financial highlights

• Gross profit was ¥5,328 million, with a gross margin of approximately 33.5%.

• Ordinary income decreased by ¥102 million to ¥803 million.

• Cash and cash equivalents at period-end rose to ¥11,088 million, up ¥4,606 million from the previous year.

• Free cash flow improved to negative ¥517 million from negative ¥4,231 million.

• Total assets at July 31, 2024, were ¥20,367 million, and net assets were ¥16,795 million.

Outlook and guidance

• Full-year revenue forecast is ¥32,300 million, a 0.6% increase year-over-year.

• Operating income is projected at ¥1,520 million.

• Net income attributable to parent company shareholders is expected to be ¥940 million.

• Dividend forecast remains unchanged at ¥30 per share.

• No changes have been made to the previously announced earnings guidance.