After the August downward revision, the full-year earnings target will be tested for potential recovery by Q3

For the six months ended June 2026, revenue was ¥26.906 billion, operating profit was ¥785 million, ordinary profit was ¥831 million, and interim net profit attributable to owners of the parent was ¥613 million. Operating profit remained positive at the interim stage, while revenue was supported by increased sales of cheese and nut products, and higher costs, including rising raw material prices, foreign-exchange movements and labor costs, weighed on profit.

In August, the full-year forecast was revised downward. Revenue was left unchanged at ¥55 billion, while operating profit was reduced from the initial ¥2.3 billion to ¥1.5 billion, ordinary profit from ¥2.2 billion to ¥1.6 billion, and net profit attributable to owners of the parent from ¥1.5 billion to ¥1.4 billion. The ¥800 million reduction in operating profit indicates that the company has incorporated into its plan the view that cost increases cannot be fully absorbed by earnings improvements from price revisions alone.

Progress against the revised plan was 48.9% for revenue, 52.3% for operating profit, 51.9% for ordinary profit and 43.8% for net profit. On a simple calculation, the second half would need to generate revenue of ¥28.094 billion, operating profit of ¥715 million, ordinary profit of ¥769 million and net profit of ¥787 million. Operating profit and ordinary profit were slightly above 50% at the interim stage, while net profit was only slightly above 40%. In Q3, it will therefore be necessary to assess separately not only operating-level profit but also progress in final profit, including equity-method income or loss, extraordinary income and expenses, and the tax burden.

The interim earnings presentation did not specify progress against the full-year forecast or the quarterly profit levels required in the second half. In Q3, we would like to confirm nine-month cumulative revenue, operating profit, ordinary profit and net profit, along with, where available, standalone results for July to September, progress against the full-year plan, and the assumptions for the remaining three months. In particular, if raw material prices, packaging material prices, the yen exchange rate or labor costs exceed the assumptions used in the August revision, there is a risk that profit alone could be revised downward again while the revenue plan is maintained.