ARCS (9948) investor relations material

Executive summary

• H1 FY2027 net sales reached a record ¥318,685 million, up 1.6% YoY; operating profit declined 2.7% to ¥7,766 million and parent-attributable profit fell 5.9% to ¥5,375 million.

• Produce, seafood and prepared-food sales supported growth, while inflation-driven thrift and lower customer traffic weighed on demand.

Financial highlights

• Gross profit increased to ¥79,221 million from ¥78,334 million; SG&A rose to ¥71,454 million from ¥70,352 million and remained within budget at 98.3% of plan.

• Ordinary profit decreased 2.7% YoY to ¥8,517 million; profit before income taxes was ¥8,406 million versus ¥8,787 million.

• Net profit was ¥5,375 million versus ¥5,713 million; basic EPS was ¥100.89 versus ¥105.85.

• Operating cash flow was ¥14,480 million versus ¥22,878 million; cash and cash equivalents ended H1 at ¥89,182 million.

Outlook and guidance

• FY2027 guidance, unchanged from the latest announcement: net sales ¥648,000 million, operating profit ¥18,000 million, ordinary profit ¥19,600 million and parent-attributable profit ¥12,400 million.

• FY2027 basic EPS is forecast at ¥232.73; annual dividend guidance is ¥82 per share, split between ¥41 interim and ¥41 year-end.

• H2 plan calls for revenue of ¥3,245億, operating profit of ¥95億 and ordinary profit of ¥104億; priorities include fresh-food value, year-end sales and online-shop expansion.

• Full-year store plan: 3 openings, including 1 completed in H1, and 17 remodels, including 10 completed.