W-SCOPE (6619) Q2 2025 earnings summary

Executive summary

• FY25 H1 sales reached 29.1bn JPY, up 5.5bn JPY (126.4%) year-over-year, driven by strong automotive battery sales, while consumer battery sales declined 15% YoY.

• Net sales for the interim period ended January 2025 rose 23.6% year-over-year to ¥29,062 million, with operating income down 60.8% to ¥1,070 million and net income attributable to owners of parent down 45.9% to ¥1,280 million.

• Operating profit for FY25 H1 was 1.1bn JPY, down 1.7bn JPY YoY, mainly due to increased COGS and production volume decrease.

• Net profit for FY25 H1 was 1.8bn JPY, down 1.5bn JPY YoY, but non-operating profit increased due to FX gains and lower interest payments.

• Comprehensive income for the period was ¥1,751 million, a 45.9% decrease year-over-year.

Financial highlights

• FY25 Q2 sales were 29,062 million JPY, up 23.6% YoY; operating profit was 1,070 million JPY, down 60.8% YoY.

• EBITDA for FY25 Q2 was 5,338 million JPY, up 84.1% YoY; net profit was 1,728 million JPY, up 63.5% YoY.

• Marginal profitability improved from 59.91% in FY24 Q2 to 69.97% in FY25 Q2.

• Net income per share was ¥23.32, up from ¥7.44 in the previous year.

• Total assets increased to ¥201,848 million from ¥171,000 million at the end of the previous fiscal year.

Outlook and guidance

• Q3 is expected to be weak due to a slowdown in the European EV market, with gradual recovery anticipated from Q4.

• EV separator shipments to the US will begin in Q4; Hungarian plant mass production is scheduled for H2 2025.

• FY2025 earnings guidance is under review due to possible deconsolidation of WCP; consolidated earnings forecasts for the fiscal year ending January 2025 remain undecided.

• Long-term targets: consolidated sales of 250bn JPY and operating profit of 33bn JPY by 2030.