First-half profit recovery progressed, but the focus is on normalisation in the second half and separating one-off factors

First-half revenue from January through June 2026 was ¥9.09973 billion, up 14.0% year on year. Operating profit turned from an operating loss of ¥147.879 million in the same period of the previous year to a profit of ¥615.273 million, while ordinary profit was ¥564.534 million and interim net profit attributable to owners of the parent was ¥279.484 million. Progress toward the full-year revenue forecast of ¥18.5 billion was approximately 49.2%, while progress toward the ¥900 million operating profit forecast was approximately 68.4%, meaning profit progress was substantially ahead of revenue progress.

Subtracting first-half results from the full-year forecasts means that the second half, from July through December, requires revenue of ¥9.40027 billion, operating profit of ¥284.727 million, ordinary profit of ¥235.466 million and net profit attributable to owners of the parent of ¥120.516 million. Second-half revenue represents approximately 50.8% of the full-year plan, so a simple half-year allocation would not require an excessive upside. Operating profit does not need to repeat the first half's level of more than ¥600 million, but the company must absorb the effects of last year's second-half demand and the foreign-exchange environment. The company has explained that seasonality driven by the year-end sales season in Europe and the United States tends to increase revenue and profit in the second half. FY2026-Q3 will therefore be a period for confirming whether this seasonality is reflected in actual sales volumes and profit.

The earnings presentation gives standalone second-quarter revenue of approximately ¥4.4 billion, operating profit of ¥399 million and ordinary profit of ¥400 million. Although the standalone second-quarter operating margin reached approximately 9.1%, the operating margin required in the second half to achieve the full-year plan is only approximately 3.0%, leaving room to absorb some slowdown in Q3 while still meeting the full-year plan. However, first-half profit includes the effects of the weaker yen, structural reforms and tariff refunds on current-period sales, so it would be risky to assess the likelihood of the second-half plan based on seasonality alone.

The full-year forecasts were raised from revenue of ¥17.5 billion and operating profit of ¥650 million at the first-quarter stage to revenue of ¥18.5 billion and operating profit of ¥900 million at the first-half results stage. The ordinary profit forecast was also raised from ¥550 million to ¥800 million, and the net profit forecast from ¥200 million to ¥400 million. In FY2026-Q3, key issues will include whether the company can disclose cumulative progress against the revised plan, second-half sales volumes, SG&A levels and operating profit excluding tariff refunds, going beyond simply confirming the landing point after the upward revision.