Milbon Co., Ltd (4919 JP) reported FY25 (Dec year-end) 1H earnings with a gross profit [GP] of ¥15,502mil (-1.6% YoY) and operating profit [OP] of ¥1,938mil (-39.0% YoY) on sales of ¥24,807mil (+1.1% YoY). RP declined -44.3% YoY to ¥1,853mil, due mainly to net FOREX losses (-¥120mil). The 1H results fell short of the firm’s sales and OP guidance by -4.2% and -31.0%, respectively due to (1) a decline in GP due to weaker-than-expected sales (-¥707mil) and (2) the deterioration of the GPM on the back of inventory valuation losses (approx. -¥454mil). Given 1H results, the firm revised down FY25 guidance from OP of ¥7,000mil (+2.3% YoY) on sales of ¥54,250mil (+5.7% YoY) to OP of ¥5,300mil (-22.5% YoY) on sales of ¥52,300mil (+1.9% YoY). Milbon principally pays out 50% of net profit as a dividend on a progressive dividend basis. For the time being, Milbon commits to pay an annual dividend of ¥88.00/share and not to reduce the dividend from that of the previous years. A share buyback programme of 870,000 shares (2.7% of shares outstanding) at maximum cost of ¥2,000mil between 12 August and 23 December 2025 was announced as an additional shareholder returns.
