Japanese trading giant records ¥438.4 billion ($3.1 billion) profit as non-resource businesses strengthen, while maintaining a conservative balance sheet with net debt ratio at 0.47x.
The company’s first-half performance was marked by strong earnings across its consumer-focused divisions, with operating cash flow reaching a record ¥513 billion. Net profit rose 6.2% year-on-year, driven by FamilyMart’s China reorganization and solid performance in machinery and food businesses.
Core profit, which excludes one-time gains, increased by 3% to ¥396 billion, demonstrating resilience in the company’s base operations. The trading house maintained strong profitability despite headwinds from falling iron ore prices and operational challenges in its coking coal business.
Non-resource segments accounted for 80% of profits, highlighting ITOCHU’s successful shift toward consumer-focused businesses. The company saw particular strength in its ICT & Financial Business segment, where profits were supported by strong performance at ITOCHU Techno-Solutions.
The company’s retail unit, FamilyMart, posted significant gains following the restructuring of its Chinese operations, while its food distribution business benefited from increased consumer activity and higher sales prices.
ITOCHU kept its full-year profit forecast unchanged at ¥880 billion, maintaining a cautious outlook amid global economic uncertainties. The company continued its shareholder returns policy with planned dividends of ¥200 per share and share buybacks of ¥150 billion.
“The company’s strong performance in non-resource sectors helps offset volatility in commodity markets,” says President Keita Ishii, highlighting plans to accelerate strategic investments in the second half while maintaining financial discipline.
The trading house’s net debt-to-equity ratio improved to 0.47 times from 0.51 at the end of March, reflecting strong cash generation and disciplined capital allocation.
