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Earnings2216Kanro Inc.Food

Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

The consolidated results for the interim period of the fiscal year ending December 2026 were disclosed. As no consolidated financial statements were prepared for the previous interim period, there is no year-on-year comparison. Full-year forecasts were revised to net sales of ¥36.5 billion and operating profit of ¥4.2 billion, among other items, while the dividend forecast was unchanged.

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Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales17,454¥ millionProgress 47.8%
Operating profit2,146¥ millionProgress 51.1%
Ordinary income2,159¥ millionProgress 51.4%
Net income attributable to owners of the parent1,554¥ million

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥36.87
Financial position at period-end
Total assets31,883¥ million
of which net assets 19,730 ¥ millionEquity ratio 61.9%vs. prior year-end +5.4pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+2,194,341
Investment-2,692,889
Financials-725,632
Net change-1,224,180

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ thousand).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥3,040,859 thousand
Segment revenueConfectionery and Food Products Business ¥17,454,880 thousand
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥36,500 million (YoY +5.0%)
Operating profit¥4,200 million (YoY -10.5%)
Ordinary income¥4,200 million (YoY -11.5%)
Profit attributable to owners of parent¥3,000 million (YoY -11.2%)
Revision to Earnings ForecastNet Sales Not disclosed → ¥36,500 million / Operating profit Not disclosed → ¥4,200 million / Ordinary income Not disclosed → ¥4,200 million / Net income Not disclosed → ¥3,000 million
Annual Dividend Forecast¥32 → ¥33
Factors Behind Changes in Business Performance

As no consolidated financial statements were prepared for the previous interim period, there is no comparative analysis with the same period of the previous year. In the candy business, the gourmet category offset the decline in throat lozenges. Gummy products performed well, including the Kanro The Strong series and gummies developed through initiatives with retailers. On the profit side, fixed costs from increased staffing, material and fuel costs, storage and delivery expenses, advertising expenses, personnel expenses, and expenses related to the new core system increased. Interim net income attributable to owners of the parent included extraordinary income from the reduction of cross-shareholdings.

Disclosure regarding the going concern assumption

No applicable matters

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew — companies (company name: —) / Excluded — companies (company name: —)
Material subsequent eventsThe Company resolved to acquire up to 1,100,000 shares of treasury stock, with a maximum total acquisition cost of ¥1.4 billion, on 3 August 2026, and to cancel 3,000,000 shares of treasury stock on 31 August 2026. The reasons are to return profits to shareholders and pursue flexible capital policies.
Impairment loss¥91,051 thousand
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of investment securities ¥148,513 thousand / Extraordinary loss Loss on Disposal of Fixed Assets ¥2,615 thousand, Impairment Losses ¥91,051 thousand
Depreciation and amortization¥789,887 thousand
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors and securities analysts)
Issued Shares at Period-End45,946,812
Treasury Shares at Period-End3,764,500
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales¥17,454 million
Operating profit¥2,146 million
Ordinary income¥2,159 million
Profit attributable to owners of the parent¥1,554 million
Net income per share¥36.87
Equity ratioEnd of the current fiscal period 61.9 / End of previous period 56.5
Total assets¥31,883 million
Net assets¥19,730 million
Cash flows from operating activities¥2,194,341 thousand
Cash flows from investing activities¥-2,692,889 thousand
Cash flows from financing activities¥-725,632 thousand
Cash and cash equivalents at end of period¥3,040,859 thousand
Full-year earnings forecastNet Sales ¥36,500 million (YoY +5.0%) / Operating profit ¥4,200 million (YoY -10.5%) / Ordinary income ¥4,200 million (YoY -11.5%) / Profit attributable to owners of parent ¥3,000 million (YoY -11.2%)
Revision to Earnings ForecastNet Sales Not disclosed → ¥36,500 million / Operating profit Not disclosed → ¥4,200 million / Ordinary income Not disclosed → ¥4,200 million / Net income Not disclosed → ¥3,000 million
Annual Dividend Forecast¥32 → ¥33
Segment revenueConfectionery and Food Products Business ¥17,454,880 thousand
Depreciation and amortization¥789,887 thousand
Impairment loss¥91,051 thousand
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of investment securities ¥148,513 thousand / Extraordinary loss Loss on Disposal of Fixed Assets ¥2,615 thousand, Impairment Losses ¥91,051 thousand
Disclosure regarding the going concern assumptionNo applicable matters
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew — companies (company name: —) / Excluded — companies (company name: —)
Material subsequent eventsThe Company resolved to acquire up to 1,100,000 shares of treasury stock, with a maximum total acquisition cost of ¥1.4 billion, on 3 August 2026, and to cancel 3,000,000 shares of treasury stock on 31 August 2026. The reasons are to return profits to shareholders and pursue flexible capital policies.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors and securities analysts)
Issued Shares at Period-End45,946,812
Treasury Shares at Period-End3,764,500
Factors Behind Changes in Business PerformanceAs no consolidated financial statements were prepared for the previous interim period, there is no comparative analysis with the same period of the previous year. In the candy business, the gourmet category offset the decline in throat lozenges. Gummy products performed well, including the Kanro The Strong series and gummies developed through initiatives with retailers. On the profit side, fixed costs from increased staffing, material and fuel costs, storage and delivery expenses, advertising expenses, personnel expenses, and expenses related to the new core system increased. Interim net income attributable to owners of the parent included extraordinary income from the reduction of cross-shareholdings.
Items this document does not state (6)
Operating MarginPayout ratioShareholder Return PolicySegment profitRegional salesOrders received and order backlog

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Profit margins declined due to higher fixed costs from increased staffing ahead of the launch of the new gummy production line, higher material and fuel costs resulting from the situation in the Middle East, and increases in storage and delivery expenses, advertising expenses, personnel expenses, and expenses related to the new core system. Meanwhile, net sales increased on strong sales of gummy products, and gains on the sale of investment securities resulting from the reduction of cross-shareholdings were recorded as extraordinary income.

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Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated) | Kanro Inc. (2216) timely disclosure | Komori