Revenue and profit increased, but ¥2,881 million in second-half operating profit is needed to reach full-year operating profit of ¥5,000 million

Revenue for the six months from January to June 2026 was ¥9,989 million, up 11.0% year on year, while operating profit was ¥2,119 million, up 49.1%. Ordinary profit was ¥1,996 million and interim net profit attributable to owners of the parent was ¥1,169 million, up 41.3% and 37.7%, respectively. Profit growth exceeded revenue growth, indicating that in the first half, higher revenue expanded contribution profit while the cost structure improved.

The full-year forecast, however, calls for revenue of ¥21,348 million, operating profit of ¥5,000 million and net profit of ¥3,097 million. Simply deducting first-half results means that the company needs to generate ¥11,359 million in revenue, ¥2,881 million in operating profit and ¥1,928 million in net profit in the second half. The required operating margin on second-half revenue is approximately 25.4%, about 4.2 percentage points above the first-half operating margin of 21.2%. Seasonality and the effects of second-half price revisions must be considered, but the forecast assumes not merely a continuation of the first-half pace, but a further improvement in profitability.

In the second quarter alone, revenue was ¥5,086 million and operating profit was ¥1,093 million, up 8.3% and 30.1%, respectively, year on year. The second quarter accounted for ¥1,093 million of the first-half operating profit of ¥2,119 million, indicating an improvement in quarterly profit levels. By segment, progress against the full-year plans in the first half varied considerably on the profit side: FOOD revenue was at 47.3% and operating profit at 46.9%, while ES revenue was at 46.0% and operating profit at 20.3%.

At the next earnings release, we will review cumulative Q3 revenue and operating profit and their progress against the full-year forecast. In particular, it will be necessary to assess how much of the ¥2,881 million in second-half operating profit required from the first-half base has been generated, whether standalone third-quarter operating profit can maintain the ¥1,093 million recorded in the second quarter, and whether the full-year operating profit forecast of ¥5,000 million will be maintained.