ARIAKE JAPAN (2815) Q2 2026 earnings summary

Executive summary

• Consolidated net sales decreased by 0.8% year-on-year to ¥31,278 million, with subsidiaries' sales down 3.4% but the parent company achieving a slight increase.

• Operating profit rose 8.1% year-on-year to ¥5,106 million, and net profit attributable to owners of parent nearly doubled, up 97.0% year-on-year to ¥4,127 million, with profits up on a currency-neutral basis.

• Ordinary profit surged 70.3% year-on-year to ¥5,912 million, driven by improved cost control and the absence of prior-year derivative losses.

• Non-consolidated net sales grew 0.3% year-on-year, with operating profit up 7.0% and net profit up 109.3% year-on-year.

• Subsidiaries saw a 10.8% increase in operating profit, with Europe offsetting Asia's weakness.

Financial highlights

• Consolidated net sales: ¥31.28 billion (-0.8% YoY); operating profit: ¥5.11 billion (+8.1% YoY); net profit: ¥4.13 billion (+97.0% YoY).

• Non-consolidated net sales: ¥22.79 billion (+0.3% YoY); operating profit: ¥3.54 billion (+7.0% YoY); net profit: ¥3.26 billion (+109.3% YoY).

• Gross profit for the period was ¥9,361 million, up from ¥9,036 million in the prior year.

• Basic earnings per share increased to ¥129.59 from ¥65.77 year-over-year.

• Cash and cash equivalents at period end were ¥50,238 million, down from ¥58,958 million at the previous fiscal year-end.

Outlook and guidance

• FY2026 consolidated net sales forecast: ¥67.1 billion (+2.6% YoY); operating profit: ¥12.2 billion (+9.9% YoY); operating margin: 18.2%.

• Non-consolidated full-year forecast: net sales ¥49.0 billion, operating profit ¥8.43 billion, margin 17.2%.

• Basic earnings per share for the full year is forecast at ¥273.17.

• No changes have been made to previously disclosed forecasts.

• Plan to offset Asia's sluggishness with European growth and increased domestic sales in the second half.