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Earnings presentation8078HANWA CO.,LTD.Trading & Wholesale

Earnings Presentation Materials for the First Quarter of FY2026 (Fiscal Year Ending March 2027)

In the first quarter of FY2026, revenue increased 12% year on year, operating profit rose 41%, and ordinary profit increased 36%, resulting in higher revenue and profit. Energy and Lifestyle Materials and Recycled Metals were the main drivers of profit growth, while Steel and Overseas Sales Subsidiaries posted lower profits.

Worth reading
80Important
Scored from 4 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
49
¥100 million (increase in ordinary income from the year-earlier period)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 20275 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,185 million+12.0%
Operating profit¥205 million+41.0%
Ordinary income¥190 million+36.0%
Net income¥114 million+15.0%
Results for the three months of the current quarter
Net Sales
¥7,185 million
Gross profit
¥429 million
Operating profit
¥205 million
Ordinary income
¥190 million
Profit attributable to owners of the parent
¥114 million
Full-year earnings forecast
Net Sales
¥30,000 million
Operating profit
¥625 million
Ordinary income
¥570 million
Profit attributable to owners of the parent
¥400 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales24%
Operating profit33%
Ordinary income33%
Profit attributable to owners of the parent29%
Underlying Ordinary Profit27%
By segment
Iron and Steel25%
Recycled Metals75%
Food27%
Energy and Daily Materials56%
Overseas Sales Subsidiaries26%
Other17%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Iron and SteelGenerally in line with plan
Primary MetalsBelow plan
Recycled MetalsUpside scenario
FoodGenerally in line with plan
Energy and Daily MaterialsUpside scenario
Overseas Sales SubsidiariesGenerally in line with plan
OtherGenerally in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
From Ordinary Profit to Underlying Ordinary ProfitOrdinary profit ¥19.0 billion, inventory valuation -¥200 million, foreign exchange valuation -¥0 million, derivatives valuation -¥3.2 billion, one-time factors +¥0 million, underlying ordinary profit ¥15.4 billion
New initiatives
  • Consolidation of Associated Steel Group, LLC in the United States as a subsidiary
    Acquisition priceUS$347 million
    Execution dateDuring fiscal 2026
  • Participation in a manufacturing business for nickel and cobalt materials (MHP) in Indonesia
    Execution dateNovember 2026
    Production startExpected in 2027
Key KPIsA metric the company considers important as a management benchmark.
  • Global steel handling volume352 10,000 tonnes
    Year on year against the same period last year▲1%
  • Consolidated steel business handling volume225 10,000 tonnes
    Year on year against the same period last year+100,000 tonnes year on year
  • Standalone Primary Metals handling volume452 thousand tonnes
  • Standalone Recycled Metals handling volume72 thousand tonnes
  • Standalone Food handling volume22 thousand tonnes
  • Standalone Energy and Lifestyle Materials handling volume1,273 thousand tonnes
Segment results
  • Iron and Steel
    Net Sales¥2,724 million
    Ordinary income¥84 million
    Year-on-year change in ordinary profit▲14%
  • Primary Metals
    Net Sales¥625 million
    Ordinary income¥-2 million
    Year-on-year change in ordinary profit+¥300 million year on year
  • Recycled Metals
    Net Sales¥874 million
    Ordinary income¥26 million
    Year-on-year change in ordinary profit+¥2.7 billion year on year
  • Food
    Net Sales¥393 million
    Ordinary income¥9 million
    Year-on-year change in ordinary profit▲3%
  • Energy and Daily Materials
    Net Sales¥1,237 million
    Ordinary income¥56 million
    Year-on-year change in ordinary profit+127%
  • Overseas Sales Subsidiaries
    Ordinary income¥16 million
    Year-on-year change in ordinary profit▲10%
  • Other
    Ordinary income¥6 million
    Year-on-year change in ordinary profit▲7%
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥7,185 million (YoY +12.0%)
Operating profit¥205 million (YoY +41.0%)
Ordinary income¥190 million (YoY +36.0%)
Net income¥114 million (YoY +15.0%)
Results for the three months of the current quarterNet Sales ¥7,185 million / Gross profit ¥429 million / Operating profit ¥205 million / Ordinary income ¥190 million / Profit attributable to owners of the parent ¥114 million
Full-year earnings forecastNet Sales ¥30,000 million / Operating profit ¥625 million / Ordinary income ¥570 million / Profit attributable to owners of the parent ¥400 million
Progress against full-year forecastNet Sales 24% / Operating profit 33% / Ordinary income 33% / Profit attributable to owners of the parent 29% / Underlying Ordinary Profit 27% / By segment Iron and Steel 25% / Recycled Metals 75% / Food 27% / Energy and Daily Materials 56% / Overseas Sales Subsidiaries 26% / Other 17%
Self-assessment against the planIron and Steel Generally in line with plan / Primary Metals Below plan / Recycled Metals Upside scenario / Food Generally in line with plan / Energy and Daily Materials Upside scenario / Overseas Sales Subsidiaries Generally in line with plan / Other Generally in line with plan
Segment resultsSegment Iron and Steel / Net Sales ¥2,724 million / Ordinary income ¥84 million / Year-on-year change in ordinary profit ▲14%, Segment Primary Metals / Net Sales ¥625 million / Ordinary income ¥-2 million / Year-on-year change in ordinary profit +¥300 million year on year, Segment Recycled Metals / Net Sales ¥874 million / Ordinary income ¥26 million / Year-on-year change in ordinary profit +¥2.7 billion year on year, Segment Food / Net Sales ¥393 million / Ordinary income ¥9 million / Year-on-year change in ordinary profit ▲3%, Segment Energy and Daily Materials / Net Sales ¥1,237 million / Ordinary income ¥56 million / Year-on-year change in ordinary profit +127%, Segment Overseas Sales Subsidiaries / Ordinary income ¥16 million / Year-on-year change in ordinary profit ▲10%, Segment Other / Ordinary income ¥6 million / Year-on-year change in ordinary profit ▲7%
Breakdown of Factors Affecting the ChangeFrom Ordinary Profit to Underlying Ordinary Profit Ordinary profit ¥19.0 billion, inventory valuation -¥200 million, foreign exchange valuation -¥0 million, derivatives valuation -¥3.2 billion, one-time factors +¥0 million, underlying ordinary profit ¥15.4 billion
Key KPIsIndicator name Global steel handling volume / Value 352 10,000 tonnes / Year on year against the same period last year ▲1%, Indicator name Consolidated steel business handling volume / Value 225 10,000 tonnes / Year on year against the same period last year +100,000 tonnes year on year, Indicator name Standalone Primary Metals handling volume / Value 452 thousand tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Recycled Metals handling volume / Value 72 thousand tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Food handling volume / Value 22 thousand tonnes / Year on year against the same period last year Not disclosed, Indicator name Standalone Energy and Lifestyle Materials handling volume / Value 1,273 thousand tonnes / Year on year against the same period last year Not disclosed
New initiativesMeasures Consolidation of Associated Steel Group, LLC in the United States as a subsidiary / Acquisition price US$347 million / Execution date During fiscal 2026, Measures Participation in a manufacturing business for nickel and cobalt materials (MHP) in Indonesia / Execution date November 2026 / Production start Expected in 2027
Items this document does not state (17)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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 Energy and Lifestyle Materials, maintaining and expanding handling volumes for petroleum products and chemical products contributed to higher profit. In Recycled Metals, securing stable transaction volumes and improved margins amid tight supply and demand conditions also drove profit growth. Steel was affected by lower progress on large-scale construction projects, Overseas Sales Subsidiaries by the trade environment, and Food by the postponement of the sales timing at certain overseas subsidiaries, resulting in lower profits.

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.
Earnings Presentation Materials for the First Quarter of FY2026 (Fiscal Year Ending March 2027) | HANWA CO.,LTD. (8078) timely disclosure | Komori