Sharp Corporation
Fiscal Year 2025 Q3 Financial Results
For the cumulative Q3 of fiscal year 2025, net sales were JPY 1,417.6 billion (14.5% YoY decrease), operating income was JPY 40.9 billion (101.0% YoY increase), and net income significantly increased to JPY 67.5 billion.
Key Figures
- Net Sales (Cumulative Q3): JPY 1,417.6 billion (14.5% YoY decrease)
- Operating Income (Cumulative Q3): JPY 40.9 billion (101.0% YoY increase)
- Net Income (Cumulative Q3): JPY 67.5 billion (YoY +JPY 7.1 billion)
AI要約
Performance Overview
In the cumulative Q3 of fiscal year 2025, net sales in the Brand Business declined due to weak demand and intensified competition; however, operating income doubled from JPY 20.3 billion in the same period last year to JPY 40.9 billion, achieving double-digit profit growth. Despite decreased revenue, the Display Device segment reduced its operating loss, leading to a significant overall improvement in operating income for the company. Ordinary income and net income also showed substantial improvements.
Segment Performance and Full-Year Outlook
Details on net sales and operating income are provided for each segment: Smart Life, Smart Workplace, Brand Business, and Display Devices. Smart Life and Smart Workplace experienced revenue declines but operating income showed an increasing trend. Brand Business and Display Devices both saw decreases in revenue and profit. The full-year earnings forecast anticipates net sales of JPY 1,870.0 billion, operating income of JPY 45.0 billion, ordinary income of JPY 52.0 billion, and net income of JPY 53.0 billion, incorporating expected improvements in non-operating income and expenses from the previous forecast.
Financial Condition and Capital Policy
The equity ratio rose to 17.8%, indicating progress in strengthening the financial base. The consolidated balance sheet shows trends in current and fixed assets, with interest-bearing debt declining. Regarding refinancing the syndicated loan maturing in late April 2026, major bank negotiations and conditions have mostly been completed, aiming to finalize contracts by the end of March.
Partial Revisions to Medium-Term Management Plan
The approach to structural reforms has been revised, projecting restructuring costs to be incurred in fiscal year 2025. Specifically, this includes the decision to suspend production at the Kameyama No. 2 Plant and to promote its sale, as well as the decision to terminate operations at Sakai Display Products Corporation. As a result, total restructuring costs for fiscal year 2025 are estimated at JPY 12.2 billion.
