CREEK & RIVER (4763) Q2 2026 earnings summary

Executive summary

• Achieved record-high interim sales of ¥28,092 million, up 8.7% year-over-year, and interim net income of ¥2,214 million, up 50.7% year-over-year, with double-digit growth in operating and ordinary profit excluding the Takahashi Shoten Group impact.

• Game and medical services segments rebounded after previous quarter struggles.

• Takahashi Shoten Group consolidation led to a temporary operating loss but boosted interim net income due to tax effects.

• Comprehensive income increased 45.3% year-over-year to ¥2,230 million.

Financial highlights

• Sales: ¥28,092 million, up 8.7% year-over-year; operating profit: ¥2,138 million, down 2.6% year-over-year; ordinary profit: ¥2,112 million, down 6.8% year-over-year.

• Interim net income: ¥2,214 million, up 50.7% year-over-year, aided by lower tax expenses.

• Gross profit margin: 37.3% (down 0.6pt YoY); operating profit margin: 7.6% (down 0.9pt YoY).

• Basic earnings per share for the six months: ¥104.72, up from ¥68.22 YoY; diluted EPS: ¥104.49.

• Total assets as of August 31, 2025: ¥47,856 million; net assets: ¥17,426 million.

Outlook and guidance

• Full-year forecast for FY2026: net sales of ¥60,000 million (+19.3% YoY), operating profit of ¥5,000 million (+38.3%), ordinary profit of ¥5,000 million (+35.3%), and profit attributable to owners of parent of ¥3,200 million (+42.1%).

• Basic earnings per share for the full year projected at ¥149.88.

• Annual dividend forecast for FY2026 is ¥45.00 per share, payout ratio 30%.

• No change to full-year forecast despite interim net income exceeding plan due to expected higher tax expenses in H2.

• Plans to increase sales in all categories, targeting double-digit profit growth.