Second Quarter (Interim Period) Consolidated Results for the Fiscal Year Ending December 2026
BALMUDA Inc. and the BALMUDA Inc. Group
Home appliances business. New products Sailing Lantern and The Clock. Sailing Lantern is being launched in the United States, Europe, South Korea and Japan.
The company explains that its sales plan reflects the challenging external environment. It cites sales of new products, lower manufacturing costs, appropriate pricing, optimization of its organizational and staffing structure, and reductions in advertising costs and other expenses as factors contributing to the improvement in profitability.
Net sales of ¥4,365 million, operating loss of ¥314 million, ordinary loss of ¥326 million, and interim net loss attributable to owners of the parent of ¥331 million. The operating loss improved by ¥70 million year on year.
Second quarter (interim period) of FY2026 December (1 January 2026 to 30 June 2026)
The consolidated earnings forecast for FY2026 December is unchanged from the forecast announced when the company released its FY2025 December results. The full-year forecast is net sales of ¥10,500 million, operating income of ¥30 million, ordinary income of ¥15 million, and net income attributable to owners of the parent of ¥10 million.
Company response
① Sales of new products based on a global customer base. ② Improvement of the earnings structure. ・Implementation of price revisions. ・Improvement of the cost structure (cost reductions and fixed-cost reductions). －Promotion of risk-hedging measures against foreign exchange fluctuations. －Significant reduction in strategic investment in the United States, primarily advertising expenses. －Efficient use of research and development expenses through the selection and concentration of development projects. －Reduction of the cost of existing products. ・Optimization of sales strategies by product and region. －Improvement of margins through optimization of product-specific sales strategies (product categories, regions of operation and sales channels). －Reduction of sales and administrative costs through the discontinuation of sales of certain products. ③ Efficient procurement of working capital. ・Renewal of overdraft agreements with relationship financial institutions to ensure stable business operations and implement the measures described above.
The company will continue selling new products, improving its earnings structure and efficiently procuring working capital to achieve a return to profitability. Regarding the overdraft agreements, it will discuss the next renewal ahead of the current agreement's expiry date of 30 November 2026 and continue regular communication with relationship financial institutions to arrange financing as necessary.
| Item | Details |
|---|---|
| Event name | Second Quarter (Interim Period) Consolidated Results for the Fiscal Year Ending December 2026 |
| Date of occurrence | 30 June 2026 (end of the interim consolidated accounting period) |
| Date recognized / date notice received | 7 August 2026 (date of submission of the earnings report) |
| Subject Entity | BALMUDA Inc. and the BALMUDA Inc. Group |
| Target Locations / Products | Home appliances business. New products Sailing Lantern and The Clock. Sailing Lantern is being launched in the United States, Europe, South Korea and Japan. |
| Cause | The company explains that its sales plan reflects the challenging external environment. It cites sales of new products, lower manufacturing costs, appropriate pricing, optimization of its organizational and staffing structure, and reductions in advertising costs and other expenses as factors contributing to the improvement in profitability. |
| Amount of Impact on Business Performance | Net sales of ¥4,365 million, operating loss of ¥314 million, ordinary loss of ¥326 million, and interim net loss attributable to owners of the parent of ¥331 million. The operating loss improved by ¥70 million year on year. |
| Accounting period in which recognized | Second quarter (interim period) of FY2026 December (1 January 2026 to 30 June 2026) |
| Impact on Earnings Forecast | The consolidated earnings forecast for FY2026 December is unchanged from the forecast announced when the company released its FY2025 December results. The full-year forecast is net sales of ¥10,500 million, operating income of ¥30 million, ordinary income of ¥15 million, and net income attributable to owners of the parent of ¥10 million. |
| Measures to prevent recurrence | ① Sales of new products based on a global customer base. ② Improvement of the earnings structure. ・Implementation of price revisions. ・Improvement of the cost structure (cost reductions and fixed-cost reductions). －Promotion of risk-hedging measures against foreign exchange fluctuations. －Significant reduction in strategic investment in the United States, primarily advertising expenses. －Efficient use of research and development expenses through the selection and concentration of development projects. －Reduction of the cost of existing products. ・Optimization of sales strategies by product and region. －Improvement of margins through optimization of product-specific sales strategies (product categories, regions of operation and sales channels). －Reduction of sales and administrative costs through the discontinuation of sales of certain products. ③ Efficient procurement of working capital. ・Renewal of overdraft agreements with relationship financial institutions to ensure stable business operations and implement the measures described above. |
| Outlook | The company will continue selling new products, improving its earnings structure and efficiently procuring working capital to achieve a return to profitability. Regarding the overdraft agreements, it will discuss the next renewal ahead of the current agreement's expiry date of 30 November 2026 and continue regular communication with relationship financial institutions to arrange financing as necessary. |
Items this document does not state (14)
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.The company states that overseas sales of the new Sailing Lantern and The Clock products, lower manufacturing costs, appropriate pricing, optimization of its organizational and staffing structure in line with sales volume, and reductions in selling, general and administrative expenses, including advertising costs, contributed to the improvement in profitability. At the same time, the company states that its sales plan reflects the challenging external environment.