Murata Manufacturing (6981) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 9.0% year-over-year to 883.5 billion yen, driven by strong demand in computers, mobility, smartphones, and supported by yen depreciation.

• Operating profit increased 13.9% year-over-year to 158.2 billion yen, with profit attributable to owners up 4.1% to 130.3 billion yen.

• Revenue and operating profit exceeded the most recent forecast by 3.7% and 2.7%, respectively, as inventory reduction efforts progressed and the yen depreciated more than expected.

• Comprehensive income declined sharply to 93.1 billion yen from 208.8 billion yen a year earlier, mainly due to negative exchange differences on translation of foreign operations.

Financial highlights

• FY2024 1st half revenue: 883.5 billion yen (+9.0% YoY); operating profit: 158.2 billion yen (+13.9% YoY); profit before tax: 164.0 billion yen (+1.7% YoY); profit attributable to owners: 130.3 billion yen (+4.1% YoY).

• FY2024 2Q revenue: 461.8 billion yen (+9.5% QoQ); operating profit: 91.8 billion yen (+38.3% QoQ).

• Gross profit margin improved to 41.7% from 39.9% a year ago; basic EPS increased to 69.45 yen from 66.25, reflecting a three-for-one stock split.

• Net cash provided by operating activities was 216.0 billion yen, up 24.4 billion yen YoY; net cash used in investing activities was 97.2 billion yen.

• Net cash used in financing activities increased to 155.7 billion yen, mainly due to dividend payments, treasury share purchases, and bond redemption.

Outlook and guidance

• Full-year FY2024 projections and dividend forecasts remain unchanged; revenue projected at 1,700.0 billion yen (+3.6% YoY), operating profit at 300.0 billion yen (+39.2% YoY), and profit attributable to owners at 235.0 billion yen (+30.0% YoY).

• Assumed exchange rate for 2nd half set at 145 yen/USD; market environment changes have been simulated but did not warrant a revision.

• Progress rate for full-year revenue at 52% after 1st half; computers segment leads with 64% progress.

• No revision to the previously announced forecast; actual results may differ due to economic, market, and currency risks.