WATTS, First Half Ordinary Profit Increases by 16%

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Thu Apr 10, 2025 3:30 pm JST Earnings

2735 WATTS CO., LTD. 【J-GAAP】

Earnings Report

WATTS CO., LTD. <2735> [TSE Std] announced its financial results after the market closed on April 10th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending August 2025 (September 2024 to February 2025) increased 15.6% from the same period last year, reaching 0.86 billion yen, exceeded the previous forecast of 0.75 billion yen.

The progress rate toward the full-year plan of 1.3 billion yen was 66.6%, also surpassing the five-year average of 54.8%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the March to August period (2H) is expected to decrease 9.4% from the same period last year to 0.43 billion yen.

In the most recent three-month period, from December to February (2Q), the consolidated ordinary profit amounted to 0.55 billion yen, an increase of 1.3% compared to the same period last year. However, the operating profit margin remained almost flat, changing from 3.6% in the same period last year to 3.6%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Sep - Feb, 2022	29,550	271	270	292	21.5	41.7	Apr 10, 2023	J-GAAP
Sep - Feb, 2023	30,255	743	749	436	32.9	61.0	Apr 10, 2024	J-GAAP
Sep - Feb, 2024	30,465	820	866	536	40.8	66.6	Apr 10, 2025	J-GAAP
YoY	+0.7%	+10.4%	+15.6%	+22.9%	+23.9%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2024 Guidance	30,500	750	750	450	34.1	10.50	Jan 10, 2025	J-GAAP
Sep - Feb, 2024 Results	30,465	820	866	536	40.8	10.50	Apr 10, 2025	J-GAAP
Revision Rate	-0.1%	+9.3%	+15.5%	+19.1%	+19.5%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar - Aug, 2024	31,002	503	479	468	35.4	20	Oct 10, 2024	J-GAAP
Mar - Aug, 2025 Guidance	31,535	530	434	414	31.4	7.50	Apr 10, 2025	J-GAAP
YoY	+1.7%	+5.4%	-9.4%	-11.5%	-11.5%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Aug, 2023	59,309	621	648	250	18.5	15	Oct 10, 2023	J-GAAP
Aug, 2024	61,257	1,246	1,228	904	68.5	20	Oct 10, 2024	J-GAAP
Aug, 2025 Guidance	62,000	1,350	1,300	950	72.0	18	Jan 10, 2025	J-GAAP
YoY	+1.2%	+8.3%	+5.9%	+5.1%	+5.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Dec - Feb, 2023	15,442	553	552	346	26.1	3.6	Apr 10, 2024	J-GAAP
Mar - May, 2024	15,349	311	320	324	24.5	2.0	Jul 10, 2024	J-GAAP
Jun - Aug, 2024	15,653	192	159	144	10.9	1.2	Oct 10, 2024	J-GAAP
Sep - Nov, 2024	14,995	267	307	191	14.6	1.8	Jan 10, 2025	J-GAAP
Dec - Feb, 2024	15,470	553	559	345	26.2	3.6	Apr 10, 2025	J-GAAP
YoY	+0.2%	0.0%	+1.3%	-0.3%	+0.5%