ITOCHU Corporation

Consolidated net profit increased 6%, or ¥25.5 billion, year over year to ¥438.4 billion in the first half, reaching 50% of the annual forecast. Core profit rose ¥12.5 billion to about ¥396 billion, with non-resource core profit up ¥10 billion to ¥306 billion and resource core profit up ¥3 billion to ¥89.5 billion. Operating cash flows reached a record ¥578.6 billion, and core operating cash flows exceeded ¥500 billion for the first time on a half-year basis at ¥513 billion. Total shareholders’ equity increased by about ¥170 billion from the end of the previous fiscal year to ¥5.6 trillion, and net DER improved to 0.47x. For the full year, the company left consolidated net profit guidance unchanged at ¥880.0 billion; Textile was raised by ¥40 billion to ¥73 billion, The 8th was raised by ¥30 billion to ¥65 billion, and Metals & Minerals was cut by ¥40 billion to ¥200 billion. Dividend per share is targeted at ¥200, up ¥40 from the prior year, and the company is carrying out ¥150 billion of share buybacks, with about ¥71.5 billion completed by the end of October.

Keita Ishii said the company is progressing steadily toward its annual forecast and highlighted Itochu’s resilience in a volatile second quarter. He emphasized that solid non-resource profits, the turnaround in the pork business, and gains from asset replacement supported the result, while the group companies’ profit ratio reached 87.5%, the highest for the first half. He also framed FYE2025 as the first year under the new management policy, stressing growth investment and the idea that profit opportunities are shifting downstream.

Ishii highlighted core profit of about ¥396 billion, core operating cash flow of ¥513 billion, and operating cash flows of ¥578.6 billion, all presented as evidence of strong earnings power and cash generation. He noted that non-resource core profit was ¥306 billion, helped by a ¥11 billion forex effect but offset by a ¥1 billion interest-rate drag, while resource core profit was ¥89.5 billion despite a ¥14 billion negative resource-price impact. On capital allocation, he pointed to total shareholders’ equity of ¥5.6 trillion, net DER of 0.47x, and a continued balance among growth investments, shareholder returns, and control of interest-bearing debt.

There was no substantive Q&A included in the provided transcript, so no analyst concerns or management rebuttals were captured. The main forward-looking discussion instead centered on the unchanged ¥880.0 billion full-year profit target, the upward revision to Textile and The 8th, and the downward revision to Metals & Minerals because of falling iron ore prices and coking coal issues. Management also explained that additional investments are being reviewed in the second half, including DESCENTE and C.I. TAKIRON, following successful tender offers.