Rohm sees strong profit growth in first half of FY2025

Rohm Co., Ltd. reported a net profit of 10.3 bn yen for the first half of FY2025, a substantial increase of 398.9% year-on-year, primarily due to rising consumer market sales and reduced fixed costs from depreciation changes. Operating profit reached 7.6 bn yen, up 3.1%, on net sales of 244.2 bn yen, which grew 5.3%. The company projects full-year net sales of 460.0 bn yen (+2.6% YoY) with an operating profit of 5.0 bn yen and net profit of 9.0 bn yen. Despite a profitable first half, the second half is expected to incur a loss due to sluggish sales and increased gold prices.

Automotive sales slightly decreased by 0.3% in 1H FY2025, but industrial sales grew 3.5%, and consumer sales surged by 23.6%. For the full year, automotive sales are expected to increase by 0.2%, industrial by 1.9%, and consumer & others by 14.0%. The company plans to boost SiC sales for xEV inverters and expand its SiC module/discrete lineup. It also targets 215 bn yen in net sales for its IC business and 175 bn yen for power devices by FY2028, aiming for profitability in SiC business and maintaining high market share in general-purpose devices.

Rohm is focused on a long-term strategy to improve profitability, targeting an operating profit ratio over 20% and ROE over 9% by FY2028. Key initiatives include optimizing the product portfolio, enhancing development efficiency, improving productivity, reducing variable costs, and consolidating manufacturing sites. The company also aims for a 50.5% reduction in GHG emissions by FY2030 and a 300% succession plan fulfillment rate.