rewrite this title Otsuka Corporation (OSUKF) Q1 FY2025 Earnings Call Transcript

Otsuka Corporation (OTCPK:OSUKF) Q1 FY2025 Earnings Conference Call August 1, 2025 2:30 AM ET

Company Participants

Yuji Otsuka – CEO, President, Chairman & MM Division Chief

Yuji Otsuka

I am Otsuka of OTSUKA CORPORATION, as introduced just now. Thank you very much for gathering here today despite the unstable weather, with the typhoon either approaching or perhaps moving away, it’s a bit unclear. I would like to explain with all my energy.

Now, let me begin by reporting on the business results for January through June.

As you can see, both consolidated and non-consolidated results exceeded the plans, with figures showing over 20% growth. For H1, this marks nearly three consecutive years of record highs. With sales up by 20% and each profit category growing by 25%, we view IT investment in IPOs as showing strong underlying strength.

Although we are a company with over JPY1 trillion in consolidated revenue, just like in past years, our consolidated-to-non- consolidated ratios remain close: net sales at 1.13, operating income at 1.10, ordinary income at 1.06, and net income at 1.03. Most of these figures are close to those of the core entity, OTSUKA.

Among them, the largest contributor in terms of volume is Networld, which recorded JPY88.1 billion, a 34.5% increase, showing significant growth. This amounts to a JPY22.5 billion increase, driven by strong performance in areas such as virtualization and storage, which contributed to the consolidated results.

Sales and profit performance are as shown. First-half net sales totaled JPY695.1 billion, just shy of the JPY700 billion mark. This represents a 22% increase, or JPY125.4 billion in monetary terms, an increase of over JPY100 billion in H1, which is likely the first time this has occurred. Gross profit amounted to JPY128.7 billion, an increase of JPY15.4 billion, although the gross profit margin declined slightly by approximately 1.4 percentage points. This is believed to