Makiya Co (9890) investor relations material

Executive summary

• H1 FY2027 revenue was ¥48,030m, up 4.7% YoY; operating profit rose 28.1% to ¥1,263m and net profit rose 27.2% to ¥876m.

• Retail growth, improved gross profit and lower utility costs supported operating profit; full-year guidance was revised upward.

Financial highlights

• Net sales were ¥47,720m, up 4.8% YoY; gross profit was ¥11,249m, or 23.6% of sales versus 23.4% a year earlier.

• Operating expenses rose 3.1% to ¥10,295m, while the expense ratio improved to 21.6% from 21.9%; personnel costs increased 5.0% and utility costs fell 6.6%.

• Ordinary profit was ¥1,075m, up 3.4% YoY; it included ¥201m of treasury-share acquisition costs. Net profit included a ¥312m gain on sale of fixed assets.

• Basic interim EPS was ¥100.26 versus ¥68.96; higher net profit and a 1,251-thousand reduction in average shares excluding treasury shares contributed to the increase.

Outlook and guidance

• FY2027 revenue guidance was raised to ¥98,380m, 5.0% above FY2026 actual results; operating profit guidance rose to ¥2,560m, 19.1% above the prior forecast and 20.0% above FY2026 actual results.

• Revised ordinary profit and net profit forecasts are ¥2,500m and ¥1,620m, respectively; net profit guidance is 10.1% above FY2026 actual results, with forecast EPS of ¥204.77.

• Improved gross margin and lower utility costs underpin the revision; higher interest expense on borrowings for treasury-share purchases is expected to be partly offset by operating profit growth.

• FY2027 annual dividend forecast remains ¥38 per share, including the ¥19 interim dividend.