Japan's Wacoal projects $1.2 bn revenue in FY25 amid profit rebound

The company expects a business loss of ¥2,500 million but anticipates an operating profit of ¥4,800 million (~$29.7 million) and a profit before taxes (PBT) of ¥6,900 million. Profit attributable to owners of the parent is projected at ¥4,500 million, with basic earnings per share estimated at ¥82.65.

For the first nine months of FY25, the company has reported a revenue of ¥133,534 million (~$880.75 million), reflecting a 5.6 per cent YoY decline compared to ¥141,407 million in the previous year, Wacoal Holdings said in a press release.

The cost of sales fell 6.0 per cent to ¥58,114 million (~$384.2 million), leading to a 5.2 per cent drop in gross profit, which stood at ¥75,420 million. Selling, general, and administrative (SG&A) expenses remained stable at ¥73,977 million (down 0.8 per cent).

Business profit dropped significantly by 70.9 per cent to ¥1,443 million (~$9.5 million), other income surged 751.5 per cent to ¥10,806 million, and other expenses fell 85.7 per cent to ¥1,174 million, leading to a turnaround in operating profit, reaching ¥11,075 million, compared to a ¥1,981 million loss in the prior year.

Similarly, PBT rose to ¥13,117 million, recovering from a loss of ¥1,543 million in 2023. The company also posted a net profit of ¥8,950 million, reversing the ¥3,950 million loss recorded in the same period last year.

Profit attributable to owners of the parent reached ¥9,086 million, marking a significant recovery from the ¥3,903 million loss recorded in the same period of 2023. Total comprehensive income declined 3.6 per cent to ¥8,746 million, compared to ¥9,075 million in the previous year. Basic earnings per share (EPS) improved to ¥166.88, while diluted EPS stood at ¥166.23, reversing the ¥67.98 loss per share from the prior year.

Finance income declined slightly by 4.1 per cent to ¥1,775 million, while finance costs rose 66.2 per cent to ¥394 million. The share of profit from equity-method investments improved significantly, reaching ¥661 million from a ¥1,175 million loss.

The domestic Wacoal business contributed ¥68,764 million, down 5.2 per cent, while the overseas Wacoal business generated ¥50,001 million, a slight 0.6 per cent decline. Peach John reported ¥7,846 million, a 2.7 per cent decrease, and the other segment saw a significant 33.9 per cent drop to ¥6,923 million.

Despite the decline in revenue, operating profit surged to ¥11,075 million, reversing the ¥1,981 million loss from the previous year. The domestic Wacoal business posted a 199.5 per cent increase in operating profit to ¥9,231 million. The overseas Wacoal business, which previously recorded a ¥5,350 million loss, rebounded with a ¥1,535 million profit. Peach John also recovered, reporting an operating profit of ¥23 million, while the other segment saw a slight 15.1 per cent decline in profit to ¥286 million.

Fibre2Fashion News Desk (SG)