Asahi Rubber returns to profit as margins improve

Ibaraki, Japan – Asahi Rubber Co. has reported improved earnings for the first half of its fiscal year to 30 Sept 2025, as higher gross margins and stronger medical-grade rubber sales offset weak demand in industrial applications.

Consolidated revenue for the second quarter period rose 5.2% year-on-year to Yen3.9 billion (€22 million), compared to Yen3.69 billion a year earlier, the company announced in a 11 Nov earnings statement.

Gross profit increased 31% to Yen941 million, lifting the gross margin to 24.2% from 19.4% a year earlier.

Operating income recovered to Yen122 million, compared with a loss of Yen48.9 million in the prior-year period.

According to Asahi Rubber, domestic sales in Japan grew 6.6% year-on-year to Yen3.01 billion, supported by demand across key customer sectors.

Overseas revenue was broadly stable at Yen878 million.

Within export markets, sales to North America rose 59%, while shipments to Europe declined 15%. Asian sales dipped 2.6% year-on-year.

By segment, the industrial rubber business grew 2.8% to Yen2.94 billion, accounting for 75.6% of total revenue. The medical and hygiene rubber segment increased 13.3% to Yen948 million, raising its share of sales to 24.4%.

For the full fiscal year ending March 2026, Asahi Rubber maintained its revenue outlook at Yen7.64 billion, roughly flat year-on-year.

The company projects a full-year operating profit of Yen160 million, compared to Yen2.3 million in the previous fiscal year, and expects to return to net profit at Yen107 million.

Based in Ibaraki, Asahi Rubber produces high-precision rubber products, used in a range of applications, including the medical, industrial and electronics segments.