Most of the full-year profit target achieved in H1; H2 seasonality is the focus

FY2026-H1 revenue was ¥19,517 million, up 13.6% year on year; operating profit was ¥3,526 million, up 28.8%; ordinary profit was ¥3,533 million, up 35.0%; and interim net profit attributable to owners of the parent was ¥2,361 million, up 33.9%. Operating profit increased by ¥790 million from ¥2,736 million in the year-earlier period, and all major profit items exceeded the year-earlier period.

In terms of monetary progress against the full-year targets, revenue was ¥19,517 million against a target of ¥33,820 million, or 57.7%; operating profit was ¥3,526 million against ¥3,800 million, or 92.8%; ordinary profit was ¥3,533 million against ¥3,700 million, or 95.5%; and net profit was ¥2,361 million against ¥2,410 million, or 97.9%. The amounts still required are only ¥14,303 million in revenue, ¥274 million in operating profit, ¥167 million in ordinary profit and ¥49 million in net profit. Accordingly, in the Q3 results, the key issue will be how much of H1’s high profit level can be maintained, rather than the likelihood of achieving the profit targets.

The company has consistently explained that revenue is higher in H1 than H2 because spring shipments are concentrated in preparation for the agricultural peak season. It is therefore inappropriate to interpret the H1 operating profit progress rate of 92.8% as the full-year achievement rate. In FY2026-Q3, in addition to whether cumulative revenue exceeds ¥23,605 million in the year-earlier period, it will be necessary to assess how much profit can be added on a cumulative Q3 basis from the H1 operating profit of ¥3,526 million, and whether the seasonal decline in H2 profit is within expectations.

There was no revision to the full-year earnings forecast for the interim period, and the forecasts were maintained at ¥33,820 million in revenue, ¥3,800 million in operating profit, ¥3,700 million in ordinary profit and ¥2,410 million in net profit. In Q3, the reliability of the targets will depend not only on whether the full-year forecasts are maintained, but also on whether the company provides additional explanations of its sales assumptions for the remaining period, its H2 operating profit outlook and the shipment timing of agrochemicals and fertilizers.