SEIKO GROUP (8050) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY24 reached ¥151.0 billion, up 15.0% year-over-year, driven by strong domestic demand, inbound tourism, and robust EVS domain performance.

• Operating profit surged 63.6% year-over-year to ¥13.3–13.4 billion, with all business segments contributing to growth.

• Profit attributable to owners of parent rose 38.0% year-over-year to ¥8.6–8.7 billion.

• Domestic net sales grew 20.4% and overseas net sales rose 9.3%, with overseas accounting for 46.4% of total sales.

• 2Q FY24 net sales were ¥76.9 billion (+12.6% year-over-year), with operating profit at ¥8.2 billion (+54.5% year-over-year).

Financial highlights

• Gross profit for 1H FY24 was ¥68.2–68.3 billion (+16.7% year-over-year), with a gross margin of 45.2%.

• Ordinary profit was ¥12.8 billion, a 38.8% increase year-over-year.

• Basic earnings per share rose to ¥212.40 from ¥152.13 year-on-year.

• Free cash flow remained positive at ¥4.7 billion for 1H FY24.

• Cash and cash equivalents at period-end were ¥33.5 billion, up ¥0.8 billion from the previous fiscal year-end.

Outlook and guidance

• Full-year FY24 guidance maintained: net sales ¥306.0 billion, operating profit ¥18.0 billion, ordinary profit ¥18.0 billion, profit attributable to owners of parent ¥11.5 billion.

• Segment-specific forecasts revised due to uncertainties, including exchange rates, for 3Q and beyond.

• No revision to overall full-year forecast, but segment-specific forecasts have been updated.