Sun Frontier Fudousan (8934) Q2 2025 earnings summary

Executive summary

• H1 FY2025 sales and profit declined as fewer large property sales settled; Real Estate Services and Hotel Operations achieved record first-half profit.

• Property-sale gross profit progress, including contracted sales due to settle in FY2025, exceeded 50% of the full-year forecast; management said second-half settlements were on plan.

Financial highlights

• Net sales were ¥36,786 million, down 24.9% YoY; operating profit was ¥6,703 million, down 44.2%; ordinary profit was ¥6,350 million, down 46.8%; parent-attributable profit was ¥4,422 million, down 47.7%.

• Gross profit was ¥11,520 million, down 29.6% YoY; SG&A rose to ¥4,817 million from ¥4,334 million, reflecting personnel and systems and operations investment.

• Interest expense rose to ¥391 million from ¥256 million; comprehensive income was ¥5,161 million, down 42.9%.

Outlook and guidance

• FY2025 guidance was unchanged: net sales ¥100,000 million, operating profit ¥20,870 million, ordinary profit ¥20,000 million, parent-attributable profit ¥14,000 million and EPS ¥288.28.

• H1 progress was 36.8% for sales, 37.2% for gross profit, 32.1% for operating profit, 31.8% for ordinary profit and 31.6% for parent-attributable profit; many property settlements are scheduled for H2.

• FY2025 property purchase target was ¥55 billion; purchases reached ¥24.998 billion, including ¥10.130 billion contracted but unsettled.

• Stock-type businesses recorded first-half sales and gross profit; full-year net sales and ordinary profit progress were 51.8% and 52.8%.

• Interim dividend was ¥33 per share; the full-year dividend forecast remained ¥66 per share.