Sharp (6753) Q2 2025 earnings summary

Executive summary

• Net sales for H1 FY2024 were ¥1,096.4B, down 5.3% year-over-year, but operating profit improved to ¥0.4B from a ¥5.8B loss.

• Profit attributable to owners of parent surged 362.6% to ¥22.9B, aided by gain on sale of investment securities.

• Device Business sales declined, but operating loss narrowed due to structural reforms.

• Ordinary profit decreased 51.6% year-over-year due to foreign exchange losses.

• Comprehensive income was negative ¥12.7B, compared to ¥65.6B in the previous year.

Financial highlights

• Gross profit increased to ¥188.2B from ¥172.7B year-over-year.

• Extraordinary income rose to ¥39.5B, mainly from gain on sale of investment securities.

• Net assets decreased to ¥145.1B as of September 30, 2024.

• Cash and cash equivalents at period end were ¥198.2B, down from ¥238.0B a year earlier.

• Q2 FY2024 net sales: ¥564.4B (down 8.5% year-over-year); operating profit: ¥6.2B (up 425.9% year-over-year).

Outlook and guidance

• FY2024 full-year forecast unchanged: net sales ¥2,100B (down 9.6% year-over-year), operating profit ¥10B, ordinary profit ¥10B, bottom-line profit ¥5B.

• EPS for the year ending March 31, 2025, is expected to be ¥7.70.

• Key initiatives include asset-light strategy and planned transfer of Green Front Sakai LCD plant.