Dowa Holdings Reports Strong Profit Growth Amid Sales Decline

Dowa Holdings Co ( (DWMNF) ) has released its Q2 earnings. Here is a breakdown of the information Dowa Holdings Co presented to its investors.

Dowa Holdings Co., Ltd., a company listed on the Tokyo Stock Exchange, operates in the diversified metal and environmental management sectors, providing services such as waste treatment, metal recycling, and the production of various nonferrous metals. In its latest earnings report for the six months ended September 30, 2024, Dowa Holdings has highlighted a notable improvement in its financial performance compared to the previous year. Despite a decrease in net sales to ¥352,593 million, the company reported a significant increase in operating profit by 50.5% to ¥21,471 million, and a 55.6% rise in profit attributable to owners of the parent, reaching ¥20,520 million. These results indicate a robust recovery from the previous year’s downturn, driven by improved efficiency and cost management. Key financial metrics reveal an increase in total assets to ¥664,399 million and net assets to ¥408,092 million, with the equity-to-asset ratio remaining stable at 58.9%. The company maintained its dividend forecast at ¥130.00 per share for the fiscal year ending March 31, 2025, indicating confidence in its cash flow and profitability. Looking ahead, Dowa Holdings expects a full-year net profit attributable to owners of the parent to rise by 7.7%, despite a slight decline in net sales. The management remains cautiously optimistic, anticipating challenges in the automotive and energy sectors but expecting favorable conditions in foreign exchange and metal prices to support its growth strategy.