Rengo Co (3941) Q2 2025 earnings summary

Executive summary

• Net sales for Apr–Sept 2024 rose 9.3% year-over-year to ¥495.1 billion, driven by expanded business and M&A activity.

• Operating profit declined 22.9% year-over-year to ¥19.8 billion, mainly due to higher fixed costs despite increased sales.

• Profit attributable to owners increased 2.6% year-over-year to ¥18.9 billion, supported by extraordinary gains including a gain on bargain purchase.

• Major acquisitions included RM TOHCELLO CO., LTD. and subsidiaries, and overseas expansion through investment in Concept Packaging Group LLC.

• Environmental initiatives advanced, targeting a 46% reduction in greenhouse gas emissions by FY2030.

Financial highlights

• Net sales increased by ¥42.2 billion year-over-year; operating profit decreased by ¥5.9 billion.

• Ordinary profit fell 20.4% year-over-year to ¥21.9 billion.

• Extraordinary gains of ¥5.4 billion from bargain purchase offset some losses; extraordinary losses included plant renewal and disaster expenses.

• Cash and cash equivalents at period end rose to ¥89.7 billion, up ¥4.8 billion from the previous year.

• Basic earnings per share rose to ¥76.20 from ¥74.32 year-over-year.

Outlook and guidance

• FY2024 net sales forecast at ¥1,000.0 billion, up 11% year-over-year; operating profit forecast at ¥50.0 billion, up 2.3%.

• Profit attributable to owners projected at ¥35.0 billion, a 6% increase year-over-year.

• No revisions to previously announced forecasts due to prevailing uncertainties.