ARIAKE JAPAN (2815) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 4.8% YoY to ¥32,767 million and operating profit increased 0.6% to ¥5,135 million; ordinary profit fell 4.4% and parent-attributable profit fell 3.8%.

• Sales and profit were 1.8% and 15.0% below plan, respectively; domestic and European strength offset sluggish China performance, and full-year guidance remains unchanged.

Financial highlights

• Ordinary profit was ¥5,651 million and parent-attributable profit ¥3,972 million; lower FX gains and higher derivative valuation losses contributed to the profit decline.

• Non-consolidated sales rose 4.7% to ¥23.86bn and operating profit rose 1.3% to ¥3.59bn, exceeding plan by 0.6% and 2.0%; non-consolidated ordinary profit was ¥4.55bn and profit ¥3.21bn.

• Basic EPS was ¥125.23 versus ¥129.59 YoY; comprehensive income was ¥4,935 million, down 11.2%.

Outlook and guidance

• FY2027 forecast remains unchanged: net sales ¥69,232 million, operating profit ¥11,251 million, ordinary profit ¥13,157 million and parent-attributable profit ¥9,548 million; annual dividend forecast is ¥300 per share.

• Domestic and European strength is expected to offset Asia weakness; sales and operating profit are projected in line with plan.

• Sales initiatives target convenience-store prepared foods, supermarket deli, takeout, B2B2C, food manufacturers and foodservice; February–March purchase restraint ahead of the planned April 2027 food tax reduction is a concern.

• Yen depreciation adds ¥400m annually to direct raw-material costs; H1 impact included +¥240m to non-consolidated results and +¥820m sales/+¥130m operating profit at subsidiaries versus currency-neutral results.