Worth reading
70In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-700
¥ million (versus the initial full-year operating profit forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter (interim period) of the fiscal year ending December 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥17,454 million+4.4%
Operating profit¥2,146 million-19.4%
Ordinary income¥2,159 million-19.4%
Net income¥1,554 million-17.1%
Selling, general and administrative expensesFreight and storage costs: ¥1,135 million; advertising expenses: ¥535 million; other selling expenses: ¥198 million; personnel expenses: ¥2,057 million; general expenses: ¥1,215 million
Operating profit margin12.3%, down 3.6 percentage points year on year
Full-year earnings forecast
Net Sales
¥36,500 million
Operating profit
¥4,200 million
Ordinary income
¥4,200 million
Profit attributable to owners of the parent
¥3,000 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan not achievedBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in marginal profit from higher revenue
- Increase in material, fuel and other costs
- Higher storage and distribution expense ratio
- Increase in Advertising Expenses
- Increase in personnel expenses
- Increase in system-related expenses, including depreciation of the new core system
- Higher raw material cost ratio and fixed manufacturing costs
- Increase in repair expenses and energy costs
New initiatives
- Expansion of the new gummy production line (scheduled to begin operations in July 2027)
- Additional launch of 2 new Pure Gummy flavors in the United States
- Open a permanent Hitotsubu Kanro store at Isetan Shinjuku Store
- Test marketing of KAORITO, a new sensory candy focused on aroma
- Increased advertising investment in corporate advertising and product brands
- Share repurchase and cancellation of 3,000,000 shares
Key KPIsA metric the company considers important as a management benchmark.
- Overall candy market share12.2 %Year on year against the same period last yearPrior year: 11.8%
- Hard candy share21.2 %Year on year against the same period last yearPrior year: 19.5%
- Gummy share15.1 %Year on year against the same period last yearPrior year: 14.7%
- Number of overseas stores carrying the products400 more than stores
- Instagram followers10,000 Over people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- GummiesVolume index (most recent year)103.4Average unit price index (most recent year)102
- CandyVolume index (most recent year)97.2Average unit price index (most recent year)102.5
Medium-term management plan targets
Target fiscal year2030
Net Sales¥50 billion or more
Operating profit margin13% or more
EBITDA¥10 billion
ROIC11% or higher
ROE15% or higher
Financial targets
ROIC
2025 actual18.3%
2026 revised forecast13.2%
2030 target11% or higher
ROE
2025 actual18.9%
2026 revised forecast15.2%
2030 target15% or higher
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Approximately ¥400–500 million (estimated full-year earnings impact from higher material, supplies and energy prices due to the situation in the Middle East, and higher logistics costs)Market Size / Share
- Overall candy market: ¥197.8 billion in January–June 2026, up 2.4% year on year
- Hard candy: ¥64.9 billion, down 1.8% year on year
- Gummies: ¥68.3 billion, up 2.8% year on year
- Overall candy market share: 12.2%; hard candy: 21.2%; gummies: 15.1%
Number of stores and locations
HITOTSUBU KANRO opened a store at Isetan Shinjuku on 20 May. The Gransta Tokyo store is scheduled to be renovated in mid-September, bringing the network to 3 stores. The number of other stores at period-end and store openings and closures are Not disclosedCapital expenditures
¥130 100 million new gummy production line, extension building, automated warehouse and other facilities
Annual Dividend
Annual dividend per share¥33
Year-end dividend¥18
Payout ratio
46.4% (2026 forecast)Acquisition of treasury shares
Number of shares acquired1,100,000 shares (maximum)
Acquisition price¥1.4 billion (maximum)
Acquisition date3 August 2026
Cancellation3,000,000 shares, scheduled for 31 August 2026
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending December 2026 |
| Net Sales | ¥17,454 million (YoY +4.4%) |
| Operating profit | ¥2,146 million (YoY -19.4%) |
| Ordinary income | ¥2,159 million (YoY -19.4%) |
| Net income | ¥1,554 million (YoY -17.1%) |
| Operating profit margin | 12.3%, down 3.6 percentage points year on year |
| Selling, general and administrative expenses | Freight and storage costs: ¥1,135 million; advertising expenses: ¥535 million; other selling expenses: ¥198 million; personnel expenses: ¥2,057 million; general expenses: ¥1,215 million |
| Full-year earnings forecast | Net Sales ¥36,500 million / Operating profit ¥4,200 million / Ordinary income ¥4,200 million / Profit attributable to owners of the parent ¥3,000 million |
| Self-assessment against the plan | Plan not achieved |
| Breakdown of Factors Affecting the Change | Increase in marginal profit from higher revenue, Increase in material, fuel and other costs, Higher storage and distribution expense ratio, Increase in Advertising Expenses, Increase in personnel expenses, Increase in system-related expenses, including depreciation of the new core system, Higher raw material cost ratio and fixed manufacturing costs, Increase in repair expenses and energy costs |
| Key KPIs | Indicator name Overall candy market share / Value 12.2 % / Year on year against the same period last year Prior year: 11.8%, Indicator name Hard candy share / Value 21.2 % / Year on year against the same period last year Prior year: 19.5%, Indicator name Gummy share / Value 15.1 % / Year on year against the same period last year Prior year: 14.7%, Indicator name Number of overseas stores carrying the products / Value 400 more than stores / Year on year against the same period last year Not disclosed, Indicator name Instagram followers / Value 10,000 Over people / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Market Gummies / Volume index (most recent year) 103.4 / Average unit price index (most recent year) 102, Market Candy / Volume index (most recent year) 97.2 / Average unit price index (most recent year) 102.5 |
| Number of stores and locations | HITOTSUBU KANRO opened a store at Isetan Shinjuku on 20 May. The Gransta Tokyo store is scheduled to be renovated in mid-September, bringing the network to 3 stores. The number of other stores at period-end and store openings and closures are Not disclosed |
| Risk amount incorporated into the outlook | Approximately ¥400–500 million (estimated full-year earnings impact from higher material, supplies and energy prices due to the situation in the Middle East, and higher logistics costs) |
| Medium-term management plan targets | Target fiscal year 2030 / Net Sales ¥50 billion or more / Operating profit margin 13% or more / EBITDA ¥10 billion / ROIC 11% or higher / ROE 15% or higher |
| Financial targets | ROIC 2025 actual 18.3% / 2026 revised forecast 13.2% / 2030 target 11% or higher / ROE 2025 actual 18.9% / 2026 revised forecast 15.2% / 2030 target 15% or higher |
| Annual Dividend | Annual dividend per share ¥33 / Interim Dividend Not disclosed / Year-end dividend ¥18 |
| Payout ratio | 46.4% (2026 forecast) |
| Acquisition of treasury shares | Number of shares acquired 1,100,000 shares (maximum) / Acquisition price ¥1.4 billion (maximum) / Acquisition date 3 August 2026 / Cancellation 3,000,000 shares, scheduled for 31 August 2026 |
| Capital expenditures | ¥130 100 million (new gummy production line, extension building, automated warehouse and other facilities) |
| Market Size / Share | Overall candy market: ¥197.8 billion in January–June 2026, up 2.4% year on year, Hard candy: ¥64.9 billion, down 1.8% year on year, Gummies: ¥68.3 billion, up 2.8% year on year, Overall candy market share: 12.2%; hard candy: 21.2%; gummies: 15.1% |
| New initiatives | Expansion of the new gummy production line (scheduled to begin operations in July 2027), Additional launch of 2 new Pure Gummy flavors in the United States, Open a permanent Hitotsubu Kanro store at Isetan Shinjuku Store, Test marketing of KAORITO, a new sensory candy focused on aroma, Increased advertising investment in corporate advertising and product brands, Share repurchase and cancellation of 3,000,000 shares |
Items this document does not state (8)
Gross Profit MarginResults for the three months of the current quarterProgress against full-year forecastSegment resultsNumber of employeesAssumptions Underlying the Business OutlookOrders received and order backlogKey points of the Q&A
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.In addition to the first-half results falling short of plan, profit forecasts were revised downward due to higher raw material prices and energy costs resulting from the situation in the Middle East, as well as increases in packaging material costs, fixed manufacturing costs, logistics-related costs, advertising expenses and general expenses.
How to read this page
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