Asahi Diamond Industrial H1 FY2026: Profit up despite sales dip

Asahi Diamond Industrial reported net sales of JPY 20,479 million for the first half of fiscal year 2026 (April-September 2025), a 1.0% decrease year-over-year. Operating profit also saw a decline of 23.6% to JPY 992 million, primarily due to decreased sales, higher retirement benefit expenses, and increased personnel and depreciation costs.

Despite these challenges, profit attributable to owners of parent increased by 34.5% to JPY 1,519 million, largely due to gains from the sale of a former European factory. The company maintains its full-year forecast for FY2026, projecting net sales of JPY 42,500 million and operating profit of JPY 2,300 million.

The company's capital policy for FY2023-2025 targets a dividend payout ratio of 50% or more, a total return ratio of 120% or more (3-year average), ROE of more than 6%, and PBR of more than 1.0. For H1 FY2026, shareholder returns totaled JPY 2.5 billion, including JPY 1.3 billion in capital investment, JPY 15 per share interim dividend, and JPY 1.7 billion in treasury stock acquisition.