Sharp (6753) Q2 2025 earnings summary

Executive summary

• Brand Business sales grew year-over-year in the first half of fiscal 2024, led by significant gains in the Smart Office segment, despite yen depreciation.

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

• Net sales for the six months ended September 30, 2024, were ¥1,096,414 million, down 5.3% year-over-year.

• Operating profit was ¥479 million, a significant improvement from a ¥5,861 million loss in the prior year period.

• Profit attributable to owners of parent surged to ¥22,960 million, up 362.6% year-over-year, driven by extraordinary gains.

Financial highlights

• H1 FY2024 net sales: ¥1,096.4B, down 5.3% year-over-year.

• H1 FY2024 operating profit: ¥0.4B (0.0% margin), up from a ¥-5.8B loss in H1 FY2023.

• H1 FY2024 ordinary profit: ¥1.4B (0.1% margin), down 51.6% year-over-year.

• H1 FY2024 bottom-line profit: ¥22.9B (2.1% margin), up 362.6% year-over-year, driven by extraordinary gains.

• Gross profit increased to ¥188,219 million from ¥172,651 million year-over-year.

Outlook and guidance

• FY2024 full-year forecast: net sales ¥2,100.0B (-9.6% year-over-year), operating profit ¥10.0B (0.5% margin), ordinary profit ¥10.0B, bottom-line profit ¥5.0B.

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

• No change to fiscal year forecasts as first half results are on track.