Sekisui Jushi (4212) Q2 2025 earnings summary

Executive summary

• Net sales rose 18.5% year-over-year to ¥33,053 million for the six months ended September 30, 2024, driven by M&A contributions.

• Operating profit declined 33.0% year-over-year to ¥1,694 million, and ordinary profit fell 32.7% to ¥1,910 million, due to lower gross profit in existing businesses and increased expenses.

• Profit attributable to owners of parent dropped 50.4% year-over-year to ¥964 million, impacted by goodwill amortization and profit declines in core segments.

• Comprehensive income increased 14.5% year-over-year to ¥3,196 million, driven by foreign currency translation gains.

• The company revised its full-year profit forecast downward, but expects 2H sales and operating income to exceed initial forecasts, partially offsetting 1H declines.

Financial highlights

• 1H net sales: ¥33,053 million (+18.5% YoY); operating income: ¥1,694 million (-33.0% YoY); ordinary income: ¥1,910 million (-32.7% YoY); interim net income: ¥964 million (-50.4% YoY).

• EBITDA for 1H: ¥3,430 million (+10.2% YoY).

• Gross profit increased to ¥10,091 million from ¥8,430 million year-over-year, but selling, general, and administrative expenses rose 42.3% YoY, mainly due to labor and transportation costs.

• Basic earnings per share fell to ¥30.04 from ¥51.08 year-over-year.

• Equity-to-asset ratio improved to 73.7% as of September 30, 2024.

Outlook and guidance

• Full-year net sales forecast revised to ¥76,500 million (+21.8% YoY); operating income forecast at ¥6,000 million (-4.7% vs initial forecast); net income forecast at ¥3,650 million (-21.9% YoY).

• Basic EPS for the full year is forecast at ¥116.79.

• 2H operating income expected to exceed initial forecast, driven by increased sales in booming sectors and delayed project execution.

• Dividend forecast raised to ¥70.00 per share for the fiscal year ending March 31, 2025, marking the 16th consecutive annual increase.