Takara Holdings (2531) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, rose 8.2% year-over-year to ¥176.5 billion, exceeding forecasts, with gross profit up 5.9% to ¥58.7 billion.

• Operating income declined 15.5% year-over-year to ¥10.5 billion, while net income attributable to owners increased 13% to ¥9.1 billion, aided by extraordinary gains from asset and securities sales.

• Segment performance varied: international and bio segments showed growth, but domestic alcoholic beverages faced margin pressure.

Financial highlights

• Gross profit increased 5.9% year-over-year to ¥58.7 billion; operating income fell 15.5% to ¥10.5 billion, and ordinary income dropped 14.3% to ¥11.2 billion.

• Net income attributable to owners of the parent rose 13% year-over-year to ¥9.1 billion, supported by extraordinary income from investment securities sales.

• Free cash flow improved to ¥3.9 billion from negative ¥0.9 billion a year earlier.

• EPS was ¥46.55, up from ¥40.69 year-over-year.

• Comprehensive income was ¥22,483 million, down from ¥26,272 million year-over-year.

Outlook and guidance

• Full-year net sales forecast is ¥362 billion (+6.7% year-over-year), with operating income projected at ¥25.7 billion (+15.5%) and net income at ¥17.2 billion (+6.3%).

• No changes to previously published guidance.

• Overseas operations (excluding Takara Bio) are expected to account for 57.9% of net sales.

• ROE forecasted at 7.3% for the fiscal year.