Fuji Oil Holdings (2607) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY2024 rose 16.6% year-over-year to ¥316.0 billion, driven by higher sales prices, increased Southeast Asia volume, and yen depreciation.

• Operating profit declined 47% year-over-year to ¥4.7 billion, mainly due to significant cocoa-related losses at Blommer in the U.S.

• Profit attributable to owners of parent dropped to ¥1.0 billion, a decrease of over 90% year-over-year, reflecting the absence of prior year extraordinary income and lower operating profit.

Financial highlights

• FY2024 1H net sales: ¥316.0 billion (+16.6% YoY); operating profit: ¥4.7 billion (-47% YoY); operating margin: 1.5% (-1.8pt YoY).

• Substantive operating profit excluding cocoa special factors: ¥14.6 billion.

• Blommer’s operating loss driven by -¥9.9 billion in cocoa special factors due to volatile cocoa futures spreads.

• Full-year FY2024 forecast: net sales ¥645.0 billion (+14.3% YoY), operating profit ¥23.5 billion (+29% YoY), profit attributable to owners of parent ¥12.0 billion (+84% YoY).

• Ordinary profit fell 71.5% YoY to ¥2.37 billion; basic EPS was ¥11.71, down from ¥143.84.

Outlook and guidance

• Full-year net sales and operating profit are expected to increase, supported by higher sales prices, strong CBE demand, and improved profitability in Vegetable Oils and Fats.

• Blommer’s performance is expected to improve in 2H as price revisions take effect and cocoa futures spreads narrow, but recovery will be slower than initially forecast.

• Continued focus on structural reforms, cost reductions, and risk management, especially in the U.S. chocolate business.