Nippon Souhatsu Group (7814) Earnings: Revenue Up 13.4%, Operating Profit Down 51.6%

Nippon Souhatsu Group (7814) announced its latest financial results, reporting that net sales increased by 13.4% year-on-year to 46.606 billion yen. However, profit performance was mixed: operating profit declined by 51.6% year-on-year to 639 million yen, while ordinary profit rose by 3.8% to 1.551 billion yen. Profit attributable to owners of the parent stood at 839 million yen (down 49.3% YoY), and comprehensive income was 897 million yen (down 47.6% YoY).

From a financial and valuation perspective, the company demonstrates high capital efficiency with a Return on Equity (ROE) of 9.19% and a Return on Assets (ROA) of 1.99%. EBITDA reached 2.31 billion yen, and operating cash flow remained solid at 5.62 billion yen. While cash and cash equivalents stood at a robust 14.87 billion yen, free cash flow was -4.06 billion yen, reflecting ongoing investments. Overall, the results highlight strong revenue growth alongside a resilient financial foundation.