Komori
Earnings2735WATTS CO.,LTD.Retail

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

Revenue, operating income and ordinary income for the interim period exceeded the corresponding period of the previous year, while interim net income attributable to owners of the parent declined. The full-year earnings forecast remains unchanged, while the annual dividend is expected to decrease to ¥20.00 from ¥23.00 in the previous fiscal year.

Worth reading
49Recurring
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
2.7
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 September 2025–28 February 2026ConsolidatedJapanese GAAP
Net Sales31,275Millions of yenYear on year +2.7%Progress 49.6%
Operating profit857Millions of yenYear on year +4.6%Progress 57.1%
Ordinary income895Millions of yenYear on year +3.4%Progress 59.7%
Net income attributable to owners of the parent495Millions of yenYear on year -7.7%Progress 55.0%

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¥37.40
Financial position at period-end
Total assets26,167Millions of yen
of which net assets 13,415 Millions of yenEquity ratio 51.2%vs. prior year-end +3.9pt

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+330
Investment-371
Financials-1,348
Net change-1,389

Stacked from zero: upward is an increase in cash, downward a decrease (in Millions of yen).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 period4,840 Millions of yen
Regional sales¥1,234,352 thousand (YoY +100.2%), ¥1,225,822 thousand (YoY +100.5%), ¥7,465,600 thousand (YoY +102.3%), ¥4,323,025 thousand (YoY +103.2%), ¥7,643,674 thousand (YoY +103.1%), ¥3,644,077 thousand (YoY +105.5%), ¥2,727,137 thousand (YoY +103.5%)
Outlook and shareholder returns
Full-year earnings forecast
Net Sales63,000 Millions of yen (YoY +2.3%)
Operating profit1,500 Millions of yen (YoY +5.7%)
Ordinary income1,500 Millions of yen (YoY +5.0%)
Net income900 Millions of yen (YoY +3.4%)
Annual Dividend Forecast¥23 → ¥20
Factors Behind Changes in Business Performance

Revenue from the 100-yen shop business remained firm, and the product mix, including the proactive introduction of higher-priced products, was effective. Selling, general and administrative expenses increased due to renovation costs for existing stores and promotional expenses to improve brand recognition, but operating income and ordinary income increased.

Disclosure regarding the going concern assumption

Not applicable (no matters to report in the notes on the going concern assumption)

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 0 companies / Excluded 0 companies / Company name None
Impairment loss¥18,257 thousand
Breakdown of extraordinary income (loss)Extraordinary income Insurance surrender value ¥3,363 thousand / Extraordinary loss Loss on Disposal of Fixed Assets ¥18,759 thousand, Impairment Losses ¥18,257 thousand
Depreciation and amortization¥377,251 thousand
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors)
Issued Shares at Period-End13,458,800
Treasury Shares at Period-End184,446
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 September 2025–28 February 2026
Net Sales31,275 Millions of yen (YoY +2.7%)
Operating profit857 Millions of yen (YoY +4.6%)
Ordinary income895 Millions of yen (YoY +3.4%)
Profit attributable to owners of the parent495 Millions of yen (YoY -7.7%)
Net income per share¥37.40
Equity ratioEnd of the current fiscal period 51.2 / End of previous period 47.3
Total assets26,167 Millions of yen
Net assets13,415 Millions of yen
Cash flows from operating activities330 Millions of yen
Cash flows from investing activities-371 Millions of yen
Cash flows from financing activities-1,348 Millions of yen
Cash and cash equivalents at end of period4,840 Millions of yen
Full-year earnings forecastNet Sales 63,000 Millions of yen (YoY +2.3%) / Operating profit 1,500 Millions of yen (YoY +5.7%) / Ordinary income 1,500 Millions of yen (YoY +5.0%) / Net income 900 Millions of yen (YoY +3.4%)
Annual Dividend Forecast¥23 → ¥20
Regional sales¥1,234,352 thousand (YoY +100.2%), ¥1,225,822 thousand (YoY +100.5%), ¥7,465,600 thousand (YoY +102.3%), ¥4,323,025 thousand (YoY +103.2%), ¥7,643,674 thousand (YoY +103.1%), ¥3,644,077 thousand (YoY +105.5%), ¥2,727,137 thousand (YoY +103.5%)
Depreciation and amortization¥377,251 thousand
Impairment loss¥18,257 thousand
Breakdown of extraordinary income (loss)Extraordinary income Insurance surrender value ¥3,363 thousand / Extraordinary loss Loss on Disposal of Fixed Assets ¥18,759 thousand, Impairment Losses ¥18,257 thousand
Disclosure regarding the going concern assumptionNot applicable (no matters to report in the notes on the going concern assumption)
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 0 companies / Excluded 0 companies / Company name None
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors)
Issued Shares at Period-End13,458,800
Treasury Shares at Period-End184,446
Factors Behind Changes in Business PerformanceRevenue from the 100-yen shop business remained firm, and the product mix, including the proactive introduction of higher-priced products, was effective. Selling, general and administrative expenses increased due to renovation costs for existing stores and promotional expenses to improve brand recognition, but operating income and ordinary income increased.
Items this document does not state (8)
Operating MarginRevision to Earnings ForecastPayout ratioShareholder Return PolicySegment revenueSegment profitOrders received and order backlogMaterial subsequent events

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.

Revenue from the 100-yen shop business remained firm, and the product mix, including the proactive introduction of higher-priced products, was effective. Selling, general and administrative expenses increased due to renovation costs for existing stores and promotional expenses to improve brand recognition, but operating income and ordinary income increased.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Summary of Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending August 2026 [Japanese GAAP] (Consolidated) | WATTS CO.,LTD. (2735) timely disclosure | Komori