Toyota Tsusho (8015) Q2 2025 earnings summary

Executive summary

• Achieved record-high profit of ¥181.5B for 1-2Q FY2024, up 2.1% year-over-year, despite challenging market conditions and moderate vehicle production.

• Operating profit rose 6.3% to ¥247.9B, with progress at 50% of full-year forecast, driven by higher gross profit offsetting increased SG&A expenses.

• Revenue declined 1.3% to ¥5,065.9B, mainly due to lower trading volume in the food business despite yen depreciation.

• Comprehensive income dropped to ¥85.4B from ¥400.2B a year earlier, mainly due to negative FX translation and FVTOCI impacts.

• Cash flow from operations decreased due to higher working capital, but free cash flow after dividends improved to ¥42.5B.

Financial highlights

• Net income: ¥181.5B (+2.1% YoY); Operating profit: ¥247.9B (+6.3% YoY); Gross profit: ¥542.5B (+4% YoY).

• Revenue: ¥5,065.9B (-1.3% YoY); Operating cash flow: ¥160.7B (-¥42.6B YoY).

• Basic EPS was ¥171.98, up from ¥168.39, reflecting a 3-for-1 stock split in July 2024.

• Dividend per share forecast: ¥100 (post 3-for-1 stock split), payout ratio 30.2%.

• Net DER: 0.49x; Current ratio: 163%; Equity ratio improved to 35.9%.

Outlook and guidance

• FY2024 full-year profit forecast maintained at ¥350B, with 52% progress at 1-2Q.

• Annual dividend forecast is ¥100 per share post-split, with a progressive policy and payout ratio of 30% or more.