Dentsu Soken (4812) Q2 2025 earnings summary

Executive summary

• Net sales rose 8.1% year-over-year to ¥80,239 million, and operating profit increased 2.9% to ¥10,661 million, both reaching record highs for the first half.

• Orders received grew 3.4% and order backlog increased 3.3% year-over-year, driven by strong performance in Financial, Business Solutions, Manufacturing Solutions, and Communication IT segments.

• Net profit attributable to owners of parent rose 6.0% to ¥7,684 million.

• The company launched a new three-year medium-term management plan, targeting net sales of ¥210 billion and operating profit of ¥31.5 billion by FY2027.

• Net sales and operating profit fell short of initial forecasts by 3.3% and 7.3%, respectively, due to underperformance in Financial and Manufacturing Solutions.

Financial highlights

• Gross profit was ¥28,785 million (+6.3% YoY), with a gross margin of 35.9% (down 0.6p YoY).

• Ordinary profit increased 8.2% YoY to ¥11,109 million.

• EPS for the second quarter was ¥118.08, up from ¥111.38 a year earlier.

• Comprehensive income for the period was ¥7,481 million, down 1.6% YoY.

• Cash and cash equivalents at period end were ¥67,747 million, up ¥7,852 million YoY.

Outlook and guidance

• Full-year net sales forecast revised down by ¥2 billion to ¥168,000 million, but operating profit forecast remains at ¥23,000 million due to expected H2 sales growth and productivity gains.

• Net profit forecast for FY2025 raised to ¥16,200 million.

• H2 net sales and operating profit are forecast to increase 11.9% and 15.5% YoY, respectively.

• EPS for FY2025 is projected at ¥248.95.

• Dividend forecast for FY2025 is ¥116.00 per share, up from ¥108.00 in FY2024.