Nissui (1332) Q2 2025 earnings summary

Executive summary

• Net sales rose 8.2% year-over-year to ¥440.6 billion, driven by strong Food Products and favorable foreign exchange rates, while operating profit hit a record ¥17.2 billion, offsetting Marine Products challenges.

• Net profit declined 10.2% year-over-year to ¥10.4 billion due to the timing of securities sales.

• Comprehensive income increased 6.9% to ¥26.6 billion, supported by foreign currency translation gains.

• Interim dividend increased by ¥2 to ¥12 per share.

• Progress is on track with the annual plan, but future fluctuations are expected due to political and FX uncertainties.

Financial highlights

• Net sales: ¥440.6 billion (+8.2% year-over-year); operating profit: ¥17.2 billion (+6.1%); ordinary profit: ¥17.0 billion (flat); net profit: ¥10.4 billion (-10.2%).

• Gross profit increased by ¥7 billion to ¥70.7 billion.

• Basic earnings per share fell to ¥33.78 from ¥37.55 year-over-year.

• Equity ratio improved to 42.5% as of September 2024, up from 41.1% in March.

• Cash and cash equivalents at period-end were ¥20 billion, up from ¥14.1 billion a year earlier.

Outlook and guidance

• Full-year net sales plan: ¥875 billion; operating profit: ¥32.5 billion; ordinary profit: ¥35 billion; net profit: ¥24 billion.

• No change to previously announced earnings or dividend forecasts; business environment remains uncertain due to political and currency factors.

• Marine Products and Food Products businesses to focus on value-added products, cost control, and expanding overseas sales.

• Fine Chemicals aims to start pharmaceutical raw material sales in Europe and expand EPA/DHA product lines.

• Continued monitoring of FX and political risks; cautious approach to future business environment.