ONWARD Holdings (8016) Q2 2025 earnings summary

Executive summary

• 1H sales rose 5.2% YoY to ¥95.1bn, operating profit increased 4.6% to ¥5.3bn and net profit rose 43.5% to ¥4.1bn; Q2 returned to profit at all reported levels for the first time in 17 fiscal years.

• Functional-product demand during intense summer heat, Click & Try expansion and stronger UNFILO, KASHIYAMA and Chacott COSMETICS sales supported growth.

• WEGO became wholly owned in September 2024; its consolidation from Q3 contributed to the higher FY sales forecast.

Financial highlights

• 1H net sales were ¥95.102bn (+5.2% YoY), gross profit ¥52.709bn (+3.0%), operating profit ¥5.255bn (+4.6%) and recurring profit ¥5.213bn (+18.2%).

• Net profit was ¥4.108bn (+43.5%); EBITDA was ¥7.690bn (+4.1%).

• Gross margin was 55.4%, down 1.2pp, while the SG&A ratio improved 1.1pp to 49.9%.

• Q2 sales were ¥43.7bn (+8.0% YoY); operating, recurring and net profit all improved ¥0.5bn–¥0.6bn YoY.

• 1H extraordinary income totaled ¥1.767bn and extraordinary losses ¥1.700bn, including ¥1.445bn from subsidiary and associate liquidation.

Outlook and guidance

• FY2024 sales guidance rose to ¥210.0bn (+10.7%), incorporating estimated WEGO 2H sales of ¥10bn; operating profit, recurring profit and net profit guidance remained ¥12.5bn, ¥12.2bn and ¥8.25bn.

• FY EBITDA guidance is ¥17.7bn (+10.3%); the sales forecast increased ¥10bn, or 5.0%, from the prior forecast, with profit forecasts unchanged.

• FY2024 2H forecasts are sales ¥114.9bn, operating profit ¥7.2bn, recurring profit ¥7.0bn and net profit ¥4.1bn.