Chori (8014) Q2 2026 earnings summary

Executive summary

• Net sales and profit declined year-over-year, with net sales for the six months ended September 30, 2025, down 6.1% to ¥144,962 million and net profit attributable to owners of parent down 27.3% to ¥5,113 million, but gross profit margin improved as part of the ongoing medium-term management plan (CIP2025).

• Equity ratio improved to 65.6%, supporting a strong financial base.

• Dedicated teams established for business, financial, non-financial, human capital, and digital transformation strategies.

• Selected for the JPX-Nikkei Mid and Small Cap Index for the second consecutive year.

• The Japanese economy showed moderate recovery, but global uncertainties, including U.S. tariffs and geopolitical risks, impacted performance.

Financial highlights

• Net sales decreased 6.1% year-over-year to ¥145.0 billion.

• Operating profit fell 10.5% to ¥6.6 billion; ordinary profit dropped 20.1% to ¥6.8 billion.

• Net profit attributable to owners of parent declined 27.3% to ¥5.1 billion.

• Gross profit was ¥20,308 million, nearly flat year-over-year, while comprehensive income dropped 47.5% to ¥4,328 million.

• Profit before income taxes fell 26.4%, impacted by absence of prior year one-off gains.

Outlook and guidance

• FY03/2026 is the final year of CIP2025, with a focus on establishing a growth strategy foundation.

• Full-year forecast for FY2026: net sales ¥330,000 million (+5.9% YoY), operating profit ¥15,000 million (+3.5%), net profit attributable to owners of parent ¥11,000 million (–5.6%), and EPS ¥446.32.

• Net sales are expected to fall short of the final year target, but profitability improvements and stable profits are prioritized.

• H1 results progressed as anticipated; no changes to previously announced forecasts.

• Actual results may vary due to external factors.