YONEX (7906) Q2 2025 earnings summary

Executive summary

• Net sales for FY3/25 H1 reached ¥66.9 billion, up 16.0% year-over-year, driven by strong badminton demand and favorable yen depreciation.

• Operating profit rose 37.1% to ¥7.6 billion, and net profit attributable to owners increased 23.4% to ¥5.4 billion.

• Comprehensive income increased to ¥8.1 billion from ¥5.8 billion year-over-year, reflecting strong operational and foreign currency gains.

• Marketing campaigns leveraging international tournaments and athlete successes stimulated market growth, especially in China and Asia.

Financial highlights

• Gross profit increased 20.5% year-over-year to ¥30.2 billion, with gross margin at 45.2%.

• SG&A expenses rose 15.7% to ¥22.6 billion, reflecting higher IT, personnel, and advertising costs.

• EPS for H1 was ¥62.68, up from ¥50.43 in the prior year.

• Free cash flow improved to ¥4.6 billion, and cash and cash equivalents rose to ¥30.8 billion.

• Operating profit margin for H1 was 11.5%, up from 9.7% a year earlier.

Outlook and guidance

• Full-year FY3/25 net sales forecast revised upward to ¥134 billion (+15.1% YoY), with operating profit expected at ¥13.1 billion (+12.8% YoY).

• Profit attributable to owners of parent forecast at ¥10 billion, with EPS expected at ¥115.58.

• Annual dividend forecast raised to ¥21 per share, including a special interim dividend.

• Continued solid sports market expected, with increased marketing investments leveraging athlete achievements.