T Hasegawa (4958) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales rose 7.1% YoY to ¥35,823m; operating profit increased 5.2% to ¥4,518m, and net profit attributable to owners of parent rose 5.0% to ¥3,359m.

• Growth was supported by the Flavor Division and overseas markets; Asia segment profit increased, while the USA segment swung to a loss.

Financial highlights

• Ordinary profit rose 8.1% to ¥4,924m; EBITDA increased 7.8% to ¥7,235m.

• Gross profit increased to ¥15,142m from ¥13,835m; gross margin improved 0.9 percentage points to 42.3%, while SG&A rose ¥1,083m to ¥10,623m.

• Higher sales and an improved cost-of-sales ratio lifted operating profit, partly offset by higher SG&A, personnel costs and goodwill amortization.

• EPS was ¥82.06 versus ¥77.74; comprehensive income was ¥4,384m versus ¥3,741m.

• Operating cash flow was ¥4,631m; investing and financing cash outflows were ¥4,218m and ¥2,676m, respectively.

Outlook and guidance

• FY2025 guidance unchanged: net sales ¥74,300m, operating profit ¥9,970m, ordinary profit ¥10,450m and net profit attributable to owners of parent ¥7,580m.

• H1 progress against guidance was 48.2% for sales, 45.3% for operating profit, 47.1% for ordinary profit and 44.3% for net profit; China and Southeast Asia were expected to offset U.S. weakness.

• FY2025 dividend forecast remained ¥74 per share, including ¥37 per share for the second quarter.

• FY2025 target exchange rates were ¥145/US$, ¥20.50/RMB and ¥32/MYR; yen appreciation was expected in H2.