MediPal Holdings (7459) Q2 2025 earnings summary

Executive summary

• Achieved steady group-wide growth, with first-half net sales up 2.6% year-over-year to ¥1,824.7 billion, driven by strong wholesale performance and strategic portfolio prioritization.

• Operating profit increased 31.7% year-over-year to ¥27.1 billion, supported by higher gross profit and lower SG&A expenses.

• Profit attributable to owners of parent grew 26.7% to ¥21.7 billion, aided by extraordinary income from sale of strategic shareholdings.

• Comprehensive income rose 14.2% year-over-year to ¥35.3 billion.

• Adjusted operating profit, excluding growth investments and related amortization, increased 5.3% year-over-year.

Financial highlights

• Net sales for 2Q FY2024 reached ¥1,824.6 billion, up 2.6% year-over-year; gross profit rose 4.2% to ¥126.4 billion, with margin improving to 6.93%.

• Operating profit increased 31.7% to ¥27.1 billion; ordinary profit rose 19.7% to ¥35.0 billion.

• SG&A expenses decreased 1.5% year-over-year, reflecting lower business investment costs.

• Cash and cash equivalents at period-end were ¥249.0 billion, up from ¥207.0 billion a year earlier.

• Net assets per share increased to ¥2,973.97 as of September 30, 2024.

Outlook and guidance

• FY2024 consolidated net sales forecast at ¥3,660.0 billion (+2.8% YoY); operating profit projected at ¥50.0 billion; profit attributable to owners of parent expected at ¥33.5 billion.

• Full-year EPS forecast is ¥160.68, reflecting share buyback and cancellation.

• Annual dividend forecast maintained at ¥60 per share.

• No change from the previous forecast; profit from sales of cross-shareholdings not included due to uncertainty.