Pigeon (7956) Q2 2025 earnings summary

Executive summary

• Net sales rose 4.7% year-over-year to ¥53,734 million for the first half of FY2025, driven by strong growth in China and all business segments, with improved gross margin by 1.9 percentage points.

• Operating income increased 14.8% year-over-year to ¥6,684 million, and net income attributable to owners grew 29.4% to ¥4,624 million.

• All regions and segments reported higher sales and profits, with gross margin improvements across the board.

• Comprehensive income declined sharply to ¥1,370 million from ¥8,971 million year-over-year, mainly due to negative foreign currency translation adjustments.

• E-commerce sales ratios remained high, especially in China (78%), supporting robust online channel growth.

Financial highlights

• Gross profit improved 8.8% year-over-year to ¥27,234 million, with gross margin rising to 50.7%.

• Operating profit margin improved to 12.4% from 11.3% year-over-year.

• EPS rose from ¥29.89 to ¥38.67 year-over-year, a 29.4% increase.

• Cash and deposits decreased to ¥34,071 million, reflecting investments, dividend payments, and a ¥5,129 million decrease from December 2024.

• Dividend forecast maintained at ¥76 per share for the full year.

Outlook and guidance

• Full-year FY2025 guidance remains unchanged, with net sales forecast at ¥109,700 million (+5.3% YoY) and operating income at ¥12,900 million (+6.3% YoY).

• Net income attributable to owners is projected at ¥8,400 million, with a stable dividend forecast of ¥76 per share and EPS of ¥70.24.

• U.S. tariff impact is now expected to be less than initially estimated, but future revisions are possible if conditions change.