Yamazen (8051) Q2 2025 earnings summary

Executive summary

• Net sales for FY3/25 Q2 were ¥248.9 billion, up 0.1% year-over-year, with overseas and building materials growth offsetting domestic declines.

• Operating profit declined 29.3% year-over-year to ¥3,442 million due to higher SG&A, including SAP ERP investment and personnel/logistics costs.

• Profit attributable to owners of parent dropped 21.6% to ¥2.57 billion, while comprehensive income fell 91.0% to ¥611 million.

Financial highlights

• Operating profit margin decreased from 2.0% to 1.4% year-over-year.

• Ordinary profit declined 34.1% year-over-year; extraordinary gain of ¥640 million recorded.

• Earnings per share for the six months were ¥29.35, down from ¥36.85 in the prior year.

• Equity ratio as of September 30, 2024, was 44.0%, slightly down from 44.6% as of March 31, 2024.

• Net assets per share at end of Q2: ¥1,455.74; market cap: ¥116.1 billion.

Outlook and guidance

• Full-year FY3/25 net sales forecast revised to ¥510 billion (+0.6% YoY), operating profit to ¥10 billion (+1.1% YoY), and profit attributable to owners of parent to ¥7.6 billion (+17.1% YoY).

• Full-year earnings per share forecast is ¥87.80, reflecting treasury share acquisition.

• Dividend forecast for FY3/25 is ¥51 per share (interim ¥20, year-end ¥31), up from ¥50 in the previous year.

• No rapid recovery expected in domestic capital investment; uncertainty remains due to global economic and geopolitical risks.

• Segment profit margin for production equipment forecast at 2.6%, building materials at 3.6%, and home products at 5.2%.