Interim results from listed companies are now largely available, with manufacturers performing well on AI demand. Meanwhile, JAL and ANA saw net profit decline despite higher revenue due to the impact of the situation in the Middle East, while the restaurant industry is moving to protect profits by expanding takeout. Future developments will be closely watched.
Interim results in the manufacturing sector were strong, supported by AI demand, with a number of companies posting sharply higher net profit as demand for systems for data centers expanded and structural reforms took effect. Panasonic Holdings' net profit rose approximately 94% year on year to ¥276.9 billion, while the combined net profit of the electrical equipment sector also expanded to nearly twice the year-earlier level.
Meanwhile, net profit declined even at companies that increased revenue, against a backdrop of persistently high crude oil and raw material prices caused by the situation in the Middle East. Japan Airlines' net profit fell 42% to ¥39 billion due to soaring fuel costs, while ANA Holdings' fell 12% to ¥67 billion. Both were at levels close to those seen immediately after the COVID-19 pandemic.
In the restaurant industry, declines in profit were reported at the beef bowl chain 松屋フーズサービス, whose net profit fell 46%, and Colowide, whose net profit fell 29%. Royal Holdings President Abe Masataka (阿部 正孝) said the company expects demand for takeout to increase and indicated that it plans to continue considering takeout-only menu items.
The market has also raised concerns about the outlook for the AI boom and developments in the situation in the Middle East. Future trends in data center regulation and the crude oil market will be closely watched as factors that could affect corporate earnings.