H1 profit progress ahead of the full-year forecast; Q3 will determine the likelihood of achieving the full-year targets

Consolidated sales for FY2026-H1 were ¥22,095 million, up 6.4% year on year. Operating income was ¥2,544 million, up 21.5%, ordinary income was ¥2,682 million, up 22.6%, and interim net income attributable to owners of the parent was ¥1,775 million, up 2.3%. Operating income growth exceeded sales growth, confirming an improvement in profitability in H1.

The full-year forecasts are sales of ¥43,500 million, operating income of ¥4,500 million, ordinary income of ¥4,700 million and net income attributable to owners of the parent of ¥3,280 million. H1 progress was therefore 50.8%, 56.5%, 57.1% and 54.1%, respectively. Sales still require ¥21,405 million to reach the full-year forecast, while operating income requires ¥1,956 million. Whether these amounts can be accumulated from Q3 onward will be the first point of verification.

The operating margin improved from approximately 10.1%, calculated as the previous-year H1 operating income of ¥2,094 million divided by sales of ¥20,771 million, to approximately 11.5%, calculated as current H1 operating income of ¥2,544 million divided by sales of ¥22,095 million. However, the H1 gross profit margin declined year on year, suggesting that the improvement in profitability may have been supported by price revisions, segment mix and selling, general and administrative expenses rather than by a simple increase in the gross margin.

In the next Q3 results, we will assess whether the effects of price revisions that lifted H1 profit continue to offset higher raw material and logistics costs, and whether promotional and personnel expenses rise again. Since the H1 materials did not disclose standalone three-month Q2 figures, presenting standalone Q3 and cumulative figures together would make it easier to distinguish factors that pulled results forward in H1 from the underlying strength of H2.