Achieving the FY2026 full-year operating profit forecast will require a substantial buildup of profit in the second half

Revenue in 1H FY2026 was ¥6,382 million, up 5.7% year on year, while operating profit was ¥96 million, up 94.6%. Ordinary loss was ¥3 million, and the interim net loss attributable to owners of the parent was ¥20 million, an improvement from the ¥50 million ordinary loss and ¥100 million interim net loss in the same period of the previous year. Although a recovery has been confirmed at the operating profit level, losses remain at the ordinary profit and net income levels.

The company’s FY2026 full-year forecasts are revenue of ¥13,172 million, operating profit of ¥432 million, ordinary profit of ¥283 million and net income attributable to owners of the parent of ¥250 million. Based on the 1H results, revenue progress was 48.4%, while operating profit progress was 22.2%; ordinary profit was effectively in the red, and net income was also negative. On a simple calculation, achieving the full-year forecasts will require an additional ¥336 million in operating profit, ¥286 million in ordinary profit and ¥270 million in net income during the second half alone.

The company cites store relocations and new openings, strong performance in certain product categories, and growth in the wholesale businesses for its own distilled whisky and highball cans, as well as the expansion of the real estate business, as factors behind the improvement in the first half. However, the amount of second-half profit required to meet the full-year plan, the second-half assumptions by segment and the amount of fixed-cost reductions have not been disclosed. In the next earnings release, it will be necessary to confirm which businesses generated second-half operating profit, whether the first-half improvement was attributable to one-off real estate factors, and whether the increase in selling, general and administrative expenses was absorbed.