Taiyo Yuden (6976) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2025 reached ¥86.7 billion, up 7% sequentially and 4.7% year-over-year, with growth in all market sectors.

• Net sales for the six months ended September 30, 2024 rose 8.0% year-over-year to ¥167,856 million, driven by recovery in information equipment, IT infrastructure, and yen depreciation.

• Operating profit for 2Q was ¥4.9 billion, up 88% sequentially and 81.7% year-over-year; six-month operating profit surged 253.5% year-over-year to ¥7,576 million.

• Despite growth, both net sales and operating profit fell short of forecasts due to sluggish demand in Chinese smartphones, automobiles, and IT infrastructure.

• Comprehensive income dropped 81.0% year-over-year to ¥2,926 million, mainly due to negative foreign currency translation adjustments.

Financial highlights

• 2Q net sales: ¥86.7 billion (+6.9% Q/Q, +4.7% Y/Y); operating profit: ¥4.9 billion (+88% Q/Q, +81.7% Y/Y).

• 1-2Q cumulative net sales: ¥167.9 billion (+8.0% Y/Y); operating profit: ¥7.6 billion (+253.5% Y/Y).

• Ordinary profit for 2Q was negative at ¥1.6 billion, and profit attributable to owners of parent was negative ¥2.7 billion; six-month profit attributable to owners of parent grew 4.9% Y/Y to ¥3,567 million, including a ¥1,687 million Anti-monopoly Act loss.

• Gross profit increased to ¥37,366 million from ¥29,943 million year-over-year.

• R&D expenses for 2Q: ¥3.7 billion (+9.9% Y/Y); capital investment: ¥15.1 billion (+59.1% Y/Y); depreciation: ¥11.4 billion (+20.8% Y/Y).

Outlook and guidance

• Full-year net sales forecast revised to ¥330.0 billion (+2.3% Y/Y); operating profit forecast at ¥7.6 billion (−16.3% Y/Y); profit attributable to owners of parent forecast at ¥0.

• Ordinary profit forecast lowered to ¥6,000 million (down 56.4% Y/Y).

• Deterioration in demand for electronic components expected in H2, especially for communication equipment and slow recovery in automotive and IT infrastructure.

• 3Q sales expected to decline 6–1% Q/Q, with capacitors flat to −4%, inductors −6% to −2%, and integrated modules & devices −16% to −12%.

• Dividend forecast maintained at ¥90 per share for the full year.