AZ-COM MARUWA (9090) Q2 2027 earnings summary

Executive summary

• H1 FY2027/3 net sales rose 8.5% YoY to ¥122,660 million; operating profit fell 26.1% to ¥4,484 million and parent-attributable profit fell 33.8% to ¥2,641 million.

• Revenue growth from expanded operations, more vehicles in service and newly consolidated subsidiaries was offset by weaker existing-customer volumes, higher costs and startup expenses.

Financial highlights

• Gross profit fell 5.7% to ¥10,539 million; gross margin declined to 8.6% from 9.9%, as cost of sales rose 10.1% to ¥112,121 million.

• Ordinary profit fell 33.2% to ¥4,185 million; a ¥312 million contract-cancellation provision and higher interest costs added pressure.

• Results included a ¥203 million bargain-purchase gain recorded as extraordinary income.

• EPS was ¥19.62 versus ¥29.64 a year earlier; comprehensive income was ¥2,643 million versus ¥6,072 million.

Outlook and guidance

• FY2027/3 forecast remains ¥250,000 million in sales (+8.4%); operating profit was cut to ¥11,200 million, ordinary profit to ¥11,000 million and parent-attributable profit to ¥6,600 million.

• Forecast EPS is ¥49.03; planned annual dividend remains ¥32 per share, comprising ¥16 interim and ¥16 year-end.

• H1 achieved 49.1% of forecast sales and 32.5% of forecast operating profit; full-year forecasts were reduced amid delayed profitability measures.

• Delayed reform benefits, lower existing-client volumes, customer transaction changes, wage increases and new-operation stabilization costs weigh on outlook; Medium-term Management Plan 2028 targets are under review.