Fuji Oil Holdings (2607) Q1 2025 earnings summary

Executive summary

• Net sales rose to ¥152.4 billion in Q1 FY2024, up 16.3% or ¥21.3 billion year-over-year, driven by higher sales prices, increased Southeast Asia volumes, and yen depreciation.

• Operating profit increased to ¥7.4 billion, up 107.6% or ¥3.9 billion year-over-year, supported by price revisions, higher sales, and gains on cocoa futures valuation.

• Ordinary profit rose to ¥6.5 billion, up 99.0% or ¥3.2 billion year-over-year.

• Profit attributable to owners of parent fell 48.5% year-over-year to ¥4.7 billion, due to the absence of prior year's extraordinary income from asset transfers.

• Growth was also supported by gains on cocoa futures and a surge in cocoa bean prices, which benefited vegetable fats for chocolate.

Financial highlights

• Net sales: ¥152.4 billion (+¥21.3 billion or 16.3% year-over-year).

• Operating profit: ¥7.4 billion (+¥3.9 billion or 107.6% year-over-year).

• Ordinary profit: ¥6.5 billion (+¥3.2 billion or 99.0% year-over-year).

• Profit attributable to owners: ¥4.7 billion (−¥4.4 billion or −48.5% year-over-year).

• Operating margin improved to 4.9% from 2.7% year-over-year.

Outlook and guidance

• First-half forecast revised upward: net sales ¥315.0 billion, operating profit ¥9.0 billion, profit attributable to owners ¥4.0 billion.

• Full-year forecast maintained: net sales ¥600.0 billion (+6.4% YoY), operating profit ¥20.0 billion (+9.8%), profit attributable to owners ¥10.0 billion (+53.3%), EPS ¥116.33.

• Dividend forecast maintained at ¥52.00 per share for FY2025.

• Second quarter expected to see a rebound from Q1 cocoa futures gains and temporary losses from cocoa raw material price differences.

• Full-year outlook considers potential demand decline due to high cocoa prices and economic downturns in China and the U.S.