FY2026 full-year targets are 43% achieved for operating profit at the interim stage, with second-half revenue build-up the focus

For the interim period of the fiscal year ending November 2026, revenue was ¥59,710 million, operating profit was ¥5,590 million, ordinary profit was ¥6,158 million, and interim profit attributable to owners of the parent was ¥4,512 million. These represented year-on-year increases of 1.9%, 13.6%, 12.8%, and 27.4%, respectively. Profit growth outpaced revenue growth, making the improvement in profitability more notable than the increase in revenue at the interim stage.

The full-year plan calls for revenue of ¥130,000 million, operating profit of ¥13,000 million, ordinary profit of ¥13,400 million, and profit attributable to owners of the parent of ¥9,500 million. Interim progress was 45.9% for revenue, 43.0% for operating profit, 46.0% for ordinary profit, and 47.5% for net profit. Operating profit was 7.0 percentage points below the 50% mark implied by an even half-year split, meaning that ¥7,410 million, or 57.0% of full-year operating profit, must be generated in the second half to meet the plan. Revenue also requires ¥70,290 million in the second half, implying a larger revenue scale than in the first half.

While profit progress against the full-year plan is behind revenue progress, net profit had reached 47.5%. The interim period included extraordinary income such as a ¥749 million gain on the sale of investment securities, so net profit progress cannot be treated as a direct indication of the core business's second-half earnings power. In the third quarter, it will be necessary to monitor not only how far operating profit progress rises from 43.0%, but also whether ordinary profit and operating profit can continue to build without relying on extraordinary gains and losses.

Results for the fiscal year ended November 2025 were revenue of ¥119,377 million, operating profit of ¥11,913 million, ordinary profit of ¥12,967 million, and net profit of ¥9,090 million. This year's plan is set above the previous year's actual results for revenue, operating profit, ordinary profit, and net profit. Accordingly, to maintain the full-year plan in the third quarter, it will be important to see whether Industrial Materials and People & Future Development can continue to offset weakness in Apparel & Textiles and Lifestyle Distribution.