Tokai Rika (6995) Q2 2025 earnings summary

Executive summary

• Sales and profits declined year-over-year due to reduced production volumes at major customers, with net sales for the six months at ¥303,972 million, down 1.1%.

• Operating profit decreased 8.4% year-over-year to ¥18,541 million.

• Profit attributable to owners of parent dropped 47.3% year-over-year to ¥10,658 million.

• Despite the decline, cumulative performance through Q2 exceeded budget, prompting an upward revision of the annual forecast and a dividend increase.

• Comprehensive income turned negative at -¥1,369 million, compared to ¥35,142 million last year.

Financial highlights

• Q2 FY2025 sales were ¥303.9bn, down 1.1% year-over-year; operating profit was ¥18.5bn, down 8.4%.

• Ordinary profit dropped 47.6% to ¥14.5bn; profit attributable to owners fell 47.3% to ¥10.6bn.

• Gross profit increased by ¥1,450 million year-over-year to ¥44,123 million.

• Basic earnings per share declined to ¥126.00 from ¥221.61 year-over-year.

• Total assets decreased to ¥500,535 million from ¥519,718 million as of March 31, 2024.

Outlook and guidance

• FY2025 sales forecast revised upward to ¥600.0bn, a 3.8% decrease year-over-year but above previous guidance.

• Operating profit forecast raised to ¥30.0bn (5.0% margin), up from previous guidance.

• Profit attributable to owners forecast at ¥22.0bn, down 11.5% year-over-year.

• Basic earnings per share forecast at ¥259.68 for the full year.

• Dividend forecast revised upward to ¥90.00 per share for FY2025.