The Japan Wool Textile Co Ltd (3201) Q2 2025 earnings summary

Executive summary

• Net sales rose 9.3% year-over-year to 58.61 billion yen (¥58,612 million) in the first half of FY2025, with operating profit up 5.4% and ordinary profit up 7.9%.

• Net income attributable to owners fell 3.6% due to higher corporate taxes, and comprehensive income dropped 38.8% year-over-year.

• Industrial Machinery & Materials and Consumer Goods & Services segments drove revenue and profit growth, while Textile & Clothing Materials saw declines.

Financial highlights

• Net sales: 58.61 billion yen (+9.3% YoY); Operating profit: 4.92 billion yen (+5.4% YoY); Ordinary profit: 5.46 billion yen (+7.9% YoY); Net income attributable to owners: 3.54 billion yen (-3.6% YoY).

• Operating margin was 8.4%, down 0.3 percentage points year-over-year.

• Extraordinary losses increased, impacting net income.

• Basic earnings per share for the six months was ¥51.37, compared to ¥53.30 in the prior year.

• Total assets as of May 31, 2025, were ¥181,855 million, with net assets of ¥125,837 million; capital adequacy ratio improved to 68.9%.

Outlook and guidance

• Full-year FY2025 forecasts revised downward: net sales now expected at 121.7 billion yen (up 5.4% YoY), operating profit at 11.3 billion yen (down 2.9% YoY), and net income at 8.0 billion yen (down 10.8% YoY), mainly due to weakness in Textile & Clothing Materials.

• Basic earnings per share for the full year is expected to be ¥116.01.

• Dividend per share planned to increase by 2 yen to 42 yen; aiming for a 35% payout ratio and DOE of 2.5% by FY2026.