Briefing on Financial Results for the Second Quarter (Six-Month Period) of the Fiscal Year Ending March 2027 | Foster Electric Company,Limited (6794) timely disclosure

Worth reading

62In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

1201

¥ million (year-on-year decrease in operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Type of presentationSecond quarter (interim period) of the fiscal year ending March 202712 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥73,490 million+10.3%

Operating profit¥3,126 million-27.8%

Ordinary income¥3,864 million0.0%

Net income¥1,900 million-27.5%

Operating profit margin4.3 %

Results for the three months of the current quarter

Net Sales

¥38,392 million

Operating profit

¥2,540 million

Ordinary income

¥2,759 million

Quarterly net income

¥1,772 million

Full-year earnings forecast

Net Sales

¥140,000 million

Operating profit

¥8,000 million

Ordinary income

¥7,500 million

Net income for the current fiscal year

¥5,000 million

Earnings per share

222.54 yen

Dividend per share

245 yen

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

No change from the initial forecast

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

H1 revenue

Slower sales to certain Chinese manufacturers-3,400

Branded premium1,300

New customers in North America and China1,300

Other automotive speakers3,286

New AVAS and mobility-related products, etc.450

Consumer-related900

First-half operating profit

Miscellaneous expenses-600

Depreciation and amortization-519

Higher sales and product mix-322

Increase in M&A business profit358

Cost structure reform200

Tariff impact204

Other-17

Rising material costs-1,000

Impact of yuan appreciation-400

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

U.S. dollar exchange rate

150 yen/US$

Euro exchange rate

175 yen/€

New initiatives

Expanding business among new customer groups for local Chinese EVs
Responding to the increase in procurement denominated in Chinese yuan resulting from a switch in procurement methods
Advance purchases and inventory build-up of raw materials by both the suppliers and the Company
Requesting customers to bear the additional costs arising from tariffs, higher materials costs and the appreciation of the Chinese yuan
Bringing forward the policy of strengthening shareholder returns under Medium-Term Business Plan 2031

Key KPIsA metric the company considers important as a management benchmark.

Equity ratio57.7 %
Automotive speaker shipment volumeIncrease year on year
Year on year against the same period last yearIncreased
Consolidated headcount15,709 People
Earnings per share222.54 yen
Year on year against the same period last year+0.7%

Segment results

SP (Speaker) Business
Net Sales¥60,063 million (YoY +9.6%)
Operating profit¥2,025 million (YoY -46.0%)
MA (Mobile Audio) Business
Net Sales¥7,498 million (YoY +13.7%)
Operating profit¥733 million (YoY +95.5%)
Other Businesses
Net Sales¥5,927 million (YoY +12.5%)
Operating profit¥366 million (YoY +84.0%)

Medium-term management plan targets

Only a reference to the policy of strengthening shareholder returns under Medium-Term Business Plan 2031. Actual performance against specific target figures and target years is not disclosed.

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

¥500 million

DetailsThe estimated amount of the higher materials costs and Chinese yuan appreciation-related costs that cannot be recovered from customers and are therefore expected to be borne by the Company

Number of employees

Number of Employees

Consolidated15,709 People

Non-consolidated456 People

Record date30 September 2026

Capital expenditures

¥3,825 million first-half results for the fiscal year ending March 2027

Annual Dividend

245 yen per share

Interim55

End of period190

Payout ratio

110.1 %

Contents of this document
Item	Details
Document type	Type of presentation
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending March 2027
Net Sales	¥73,490 million (YoY +10.3%)
Operating profit	¥3,126 million (YoY -27.8%)
Ordinary income	¥3,864 million (YoY 0.0%)
Net income	¥1,900 million (YoY -27.5%)
Operating profit margin	4.3 %
Results for the three months of the current quarter	Net Sales ¥38,392 million / Operating profit ¥2,540 million / Ordinary income ¥2,759 million / Quarterly net income ¥1,772 million
Full-year earnings forecast	Net Sales ¥140,000 million / Operating profit ¥8,000 million / Ordinary income ¥7,500 million / Net income for the current fiscal year ¥5,000 million / Earnings per share 222.54 yen / Dividend per share 245 yen
Self-assessment against the plan	No change from the initial forecast
Segment results	Segment SP (Speaker) Business / Net Sales ¥60,063 million (YoY +9.6%) / Operating profit ¥2,025 million (YoY -46.0%), Segment MA (Mobile Audio) Business / Net Sales ¥7,498 million (YoY +13.7%) / Operating profit ¥733 million (YoY +95.5%), Segment Other Businesses / Net Sales ¥5,927 million (YoY +12.5%) / Operating profit ¥366 million (YoY +84.0%)
Breakdown of Factors Affecting the Change	H1 revenue Slower sales to certain Chinese manufacturers -3,400 / Branded premium 1,300 / New customers in North America and China 1,300 / Other automotive speakers 3,286 / New AVAS and mobility-related products, etc. 450 / Consumer-related 900 / Foreign exchange and other impacts Not disclosed / First-half operating profit Slower sales to certain Chinese manufacturers Not disclosed / Miscellaneous expenses -600 / Depreciation and amortization -519 / Higher sales and product mix -322 / Increase in M&A business profit 358 / Cost structure reform 200 / Tariff impact 204 / Other -17 / Rising material costs -1,000 / Impact of yuan appreciation -400
Key KPIs	Indicator name Equity ratio / Value 57.7 % / Year on year against the same period last year Not disclosed, Indicator name Automotive speaker shipment volume / Value Increase year on year / Year on year against the same period last year Increased, Indicator name Consolidated headcount / Value 15,709 People / Year on year against the same period last year Not disclosed, Indicator name Earnings per share / Value 222.54 yen / Year on year against the same period last year 0.7 yen
Number of employees	Number of Employees Consolidated 15,709 People / Non-consolidated 456 People / Record date 30 September 2026 / Change during the period Not disclosed
Assumptions Underlying the Business Outlook	U.S. dollar exchange rate 150 yen/US$ / Euro exchange rate 175 yen/€
Risk amount incorporated into the outlook	¥500 million
Medium-term management plan targets	Only a reference to the policy of strengthening shareholder returns under Medium-Term Business Plan 2031. Actual performance against specific target figures and target years is not disclosed.
Annual Dividend	245 yen per share
Payout ratio	110.1 %
Capital expenditures	¥3,825 million (first-half results for the fiscal year ending March 2027)
New initiatives	Expanding business among new customer groups for local Chinese EVs, Responding to the increase in procurement denominated in Chinese yuan resulting from a switch in procurement methods, Advance purchases and inventory build-up of raw materials by both the suppliers and the Company, Requesting customers to bear the additional costs arising from tariffs, higher materials costs and the appreciation of the Chinese yuan, Bringing forward the policy of strengthening shareholder returns under Medium-Term Business Plan 2031

Items this document does not state (10)

Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsFinancial targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The decline in operating profit was due to a slowdown in sales to certain Chinese manufacturers, as well as temporary burdens from US tariffs, higher materials costs and the appreciation of the Chinese yuan. Factors cited for profit growth in the MA business and other businesses included strong sales of earphones and other products, increased sales of speakers for proximity alert and warning sounds, and improvements in the earnings structure resulting from structural reforms.

How to read this page

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