Revenue momentum remains intact, but profit growth is lagging sales

Revenue in FY2026-H1 was ¥273.646 billion, up 14.7% from ¥238.528 billion in the prior-year period. Operating profit was ¥32.705 billion, 7.3% above the prior-year figure of ¥30.480 billion. Ordinary profit was ¥34.053 billion, while interim net profit attributable to owners of the parent was ¥22.297 billion. All major profit measures increased.

However, revenue growth exceeded operating profit growth by 7.4 percentage points. The operating margin declined from approximately 12.8% in the prior-year period to approximately 12.0% in the current period, a decrease of about 0.8 percentage points. In FY2026-Q1, revenue rose 14.7% and operating profit rose 10.9%, but operating profit growth slowed further in H1. Higher revenue is therefore not translating directly into higher profit.

The company’s full-year forecasts remain revenue of ¥520 billion, operating profit of ¥55.6 billion, ordinary profit of ¥59.0 billion and net profit attributable to owners of the parent of ¥38.2 billion. No revisions had been made as of H1. Revenue progress was 52.6% and operating profit progress was 58.8%, with operating profit ahead of the 50% elapsed-period benchmark. In Q3, it will therefore be necessary to confirm whether the company can secure the ¥22.895 billion in second-half operating profit required to meet its full-year plan while maintaining revenue growth.

The company attributes the revenue and profit increases to expanded domestic and overseas sales, product supply and improved profitability, but it has not quantified the effects of raw material costs, personnel expenses, intensifying competition or acquisition-related amortization by factor. In the next results, the key points to check will be year-on-year revenue and operating profit growth for the nine months ended Q3, the operating margin, progress against the full-year forecasts, and the profit impact of price revisions and higher costs.