Itochu Corp (ITOCF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. I am Keita Ishii, the President of Itochu Corporation. Thank you very much for joining us today. Let me explain an overview of the business results for the first half of FIE 2025. Please refer to the FIE 2025 first half business results summary released today. Starting with page 3, This is a summary of the first half financial results. Consolidated net profit increased by 6% or 25.5 billion yen year-on-year to 438.4 billion yen, achieving 50% of the annual forecast. As a trend in our company, the core profit tends to grow in the second half rather than being evenly distributed across the quarters. We believe the progress is steady. In addition to the solid profit base in non-resource sectors, the turnaround of the previously struggling pork business and the accumulation of extraordinary gains from asset replacement have also contributed to the steady progress towards achieving our annual forecast. Our core profit reached 396 billion yen, maintaining the second-highest profit level after FIE 2023. By sector, textile, chemicals, food, construction and real estate, ICT, and the eighth showed strong performance, resulting in a 12.5 billion yen increase in core profit, which is 3% growth year-on-year. In a particularly volatile second quarter, We effectively adapted to changes and were able to minimize the impact of fluctuations. I believe we have successfully demonstrated our resilient profitability in response to environmental changes. Furthermore, the performance of our group companies, which is one of our strengths, also showed favorable trends, with the ratio of group companies reporting profits reaching 87.5%, the highest for the first half. The core operating cash flows exceeded 500 billion yen for the first time in all the half-year results and re...