Operating profit is ahead of plan for the first half, with sales progress and the validity of the full-year forecast the focus next time

For the six months ended June 2026, consolidated revenue was ¥8,434.9 million, up 1.3% year on year, and operating profit was ¥995.4 million, up 21.1%. Ordinary profit was ¥1,213.5 million, while interim net income attributable to owners of the parent was ¥653.9 million, up 93.2% and 40.8%, respectively. Operating profit growth substantially exceeded revenue growth, indicating that cost control and an improved business mix are leading the improvement in earnings.

A simple calculation of first-half progress against the full-year forecast gives revenue at 48.8% (¥8,434.9 million ÷ ¥17.3 billion) and operating profit at 57.5% (¥995.4 million ÷ ¥1.73 billion). Against the simple 50% first-half benchmark, revenue was slightly below pace while operating profit was ahead. At the next nine-month results announcement, revenue of ¥12,975.0 million and operating profit of ¥1,297.5 million can be checked against a mechanical 75% benchmark, but because of seasonality in cosmetics and the year-end selling season, these figures should be treated as progress indicators rather than strict targets for forecast achievement.

By segment, Beauty Care generated revenue of ¥8,127.0 million and operating profit of ¥994.9 million, accounting for approximately 96% of consolidated revenue and almost all consolidated operating profit. Real Estate generated revenue of ¥155.8 million and operating profit of ¥42.5 million, while Other generated revenue of ¥152.0 million and operating profit of ¥10.3 million. Accordingly, consolidated performance from the third quarter onward will depend heavily, first and foremost, on sales growth and margin maintenance in Beauty Care.

Business-structure improvement costs of ¥208.2 million were recorded in the first half, comprising ¥160.5 million in special support payments and other costs related to POLA's voluntary retirement program and ¥47.7 million in consulting and other costs related to the optimization of Jurlique's business and organizational structure. Operating profit increased to ¥995.4 million despite these one-off costs, but it will be important to determine whether additional costs arise in the third quarter and whether cost reductions lead to lasting profitability improvements rather than temporary spending restraint. Operating cash flow, regional revenue and the operating margin are not disclosed in the standard financial summary, so supplementary disclosure in the next materials will also warrant review.