SEIKO GROUP (8050) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, reached 232.5 billion yen, up 13.1% year-over-year, driven by strong domestic and overseas demand, especially in the Emotional Value Solutions Business.

• Operating profit increased 47.1% year-over-year to 20.8 billion yen, with all major business segments contributing to growth.

• Profit attributable to owners of parent grew 21.5% year-over-year to 12.9 billion yen, supported by higher revenues and improved segment performance.

• Overseas sales accounted for 46.4% of total net sales, reflecting robust international expansion.

• Year-end dividend projection increased by 5 yen to 50 yen, resulting in an annual dividend of 95 yen per share.

Financial highlights

• Gross profit for 9M FY24 was 106.0 billion yen (+14.3% year-over-year), with gross margin improving by 0.5pt to 45.6%.

• Ordinary profit rose 35.7% year-over-year to 20.7 billion yen; profit attributable to owners of parent increased 21.5% to 12.9 billion yen.

• 3Q FY24 net sales were 81.5 billion yen (+9.6% year-over-year), with operating profit at 7.4 billion yen (+24.5% year-over-year).

• Free cash flow improved to 17.6 billion yen for 9M FY24, up from 12.8 billion yen in the prior year.

• Total assets increased to 397.7 billion yen as of December 31, 2024, from 376.3 billion yen at the previous fiscal year-end.

Outlook and guidance

• FY24 net sales forecast remains at 306.0 billion yen, up 10.5% year-over-year; operating profit forecast revised up to 20.0 billion yen (+11.1% from previous forecast).

• Ordinary profit forecast raised to 20.0 billion yen, up 25.8% year-over-year.

• Profit attributable to owners of parent projected at 12.5 billion yen, up 24.4% year-over-year.

• Segment forecasts: EVS domain to see significant revenue and profit growth; DS and SS domains expected to maintain steady performance.

• Annual dividend per share forecast raised to 95 yen.