Daiichikosho (7458 ) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 reached a record high of ¥74,321 million, up 4.3% year-over-year, with gradual improvement in the business environment.

• Operating profit declined 4.1% year-over-year to ¥8,996 million, and ordinary profit fell 7.9% to ¥8,991 million, mainly due to higher SG&A expenses.

• Profit attributable to owners of parent surged 46.0% year-over-year to ¥9,598 million, driven by a ¥4,414 million gain on sale of non-current assets.

• Commercial karaoke and karaoke cabins/restaurants segments showed upward trends, despite some external impacts like Typhoon Shanshan.

• Comprehensive income rose to ¥9,810 million, up from ¥7,029 million a year earlier.

Financial highlights

• Net sales for 1H FY2024: ¥74,321 million, up 4.3% year-over-year and in line with forecast.

• Operating profit: ¥8,996 million, down 4.1% year-over-year but 3.4% above forecast.

• Extraordinary income of ¥5,532 million, mainly from a ¥4,414 million gain on sale of land.

• Net assets increased to ¥112,635 million, with an equity ratio of 54.9%.

• Gross profit increased to ¥26,349 million from ¥25,874 million year-over-year.

Outlook and guidance

• Full-year forecast unchanged: net sales ¥152.7 billion, operating profit ¥18.8 billion, ordinary profit ¥18.9 billion, profit ¥16.2 billion.

• Sales expected to rise in all segments except music software; operating profit to remain flat due to increased costs.

• Dividend forecast maintained at ¥57 per share; ROE forecast at 14.5%.