Suncorporation withholds interim dividend despite profit surge

Suncorporation will not pay an interim dividend for the fiscal year ending March 31, 2026, with a record date of September 30, 2025. This decision, made at a board of directors meeting on November 14, 2025, follows a period of significant changes in the company's financial performance. Net sales for the six months ended September 30, 2025, decreased by 1,093 million yen year-on-year to 4,701 million yen, primarily due to reduced shipments in the entertainment-related business and the conclusion of the 3G to 4G migration demand cycle in the IT-related business.

Despite the decline in net sales, the company reported a notable increase in ordinary profit by 2,095 million yen to 2,186 million yen, largely attributed to a 2,206 million yen equity method investment gain from Cellebrite. Profit attributable to owners of parent also surged by 4,040 million yen to 4,442 million yen, boosted by a 2,234 million yen extraordinary income from a gain on change in equity interest in Cellebrite. Free cash flow increased by 5,988 million yen year-on-year to 4,708 million yen, with no revisions to the full-year forecast for fiscal year 2026, which projects net sales of 16,247 million yen and ordinary profit of 6,191 million yen.

The company also expanded its "Wellness Business" segment, acquiring domestic distribution rights for sleep-tech products from MyWaves Technologies Limited, with an operating loss of 11 million yen for H1 FY3/26 in this new segment. Treasury shares increased by 2,247,989 thousand yen, totaling 5,832,230 thousand yen, reflecting share acquisitions and disposals related to stock compensation plans for directors and employees.