Sakata INX (4633) Q2 2025 earnings summary

Executive summary

• Net sales for FY2025 2Q increased 4.4% year-over-year to ¥126,396 million, driven by strong Americas performance and a recent U.S. subsidiary acquisition, despite yen appreciation and mixed regional trends.

• Operating income rose 5.4% year-over-year to ¥7,645 million, aided by stable raw material prices and higher sales volumes.

• Net income attributable to owners grew 17.5% year-over-year to ¥6,249 million, supported by exchange rate gains, especially from the Brazilian real.

• Comprehensive income turned negative at ¥(649) million due to significant foreign currency translation losses.

• No change in FY2025 full-year forecast since February 2025; continued growth expected.

Financial highlights

• Operating income margin remained at 6.0% year-over-year; ordinary income margin rose to 6.8% from 5.9%.

• Earnings per share for FY2025 2Q was ¥126.22; full-year forecast revised to ¥217.67.

• Total assets as of June 2025 were ¥213,438 million, down 3.6% from December 2024, mainly due to sale of investment securities and yen appreciation.

• Net assets declined 3.0% to ¥115,588 million, reflecting lower accumulated other comprehensive income despite higher retained earnings.

• Gross profit increased to ¥31,424 million from ¥29,007 million year-over-year.

Outlook and guidance

• FY2025 full-year net sales forecast at ¥268,000 million, up 9.1% from FY2024, with operating income projected at ¥15,500 million (up 17.8%) and net income at ¥10,800 million (up 19.9%).

• Operating income margin expected to improve to 5.8% for FY2025.

• Dividend forecast unchanged at ¥90.00 per share for the year.

• Assumptions include no major changes in U.S. trade policy and continued strong Americas sales, with a U.S. dollar exchange rate of ¥147.00 for the year.