Sanwa (5929) Q2 2025 earnings summary

Executive summary

• H1 FY2024 achieved record sales and profits, driven by strong results in Japan and North America, while Europe saw a decline in local currency terms due to market weakness.

• Net sales for the six months ended September 30, 2024, rose 9.9% year-over-year to ¥313,827 million, with operating profit up 16.5% and profit attributable to owners of parent up 7.5%.

• FY2024 forecasts were revised upward, with net sales projected at ¥653.0 billion and operating profit at ¥72.5 billion, both set to reach record highs for the fourth consecutive year.

• Enhanced shareholder returns include a total annual dividend of ¥94 per share (+¥16 YoY) and a new ¥15.0 billion share buyback, totaling ¥20.0 billion for the year.

• The group advanced its Mid-Term Management Plan, focusing on global expansion, product innovation, and sustainability initiatives.

Financial highlights

• H1 FY2024 net sales rose 9.9% YoY to ¥313.8 billion, and operating profit increased 16.5% YoY to ¥32.31 billion, both exceeding forecasts.

• Ordinary profit grew 25.9% YoY to ¥34.20 billion, and profit attributable to owners of parent rose 7.5% YoY to ¥23.78 billion.

• Comprehensive income for the period was ¥47,222 million, up 21.5% year-over-year.

• Earnings per share for the period were ¥108.91, compared to ¥100.01 in the prior year.

• Cash and cash equivalents at period-end were ¥93,483 million, a decrease of ¥712 million from March 31, 2024.

Outlook and guidance

• FY2024 net sales forecast at ¥653.0 billion (+6.9% YoY), operating profit at ¥72.5 billion (+10.9% YoY), and profit attributable to owners of parent at ¥51.0 billion (+18.0% YoY).

• Operating profit forecast revised upward by ¥10.0 billion from initial guidance.

• Earnings per share forecast for the year is ¥235.07, reflecting the impact of a share buyback.

• Extraordinary losses for FY2024 expected at ¥2.1 billion, mainly from business restructuring.

• Actual results may differ from forecasts due to various risk factors.