Cresco (4674) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 12.4% YoY to ¥34,803 million; operating profit increased 8.6% to ¥2,956 million and net income rose 3.3% to ¥2,121 million.

• Full-year guidance calls for net sales of ¥71,500 million, operating profit of ¥8,000 million, ordinary profit of ¥8,200 million and net income of ¥5,530 million.

Financial highlights

• Gross profit increased to ¥6,688 million from ¥5,981 million; SG&A rose to ¥3,733 million from ¥3,261 million.

• Ordinary profit rose 6.3% YoY to ¥3,048 million; EPS was ¥52.96 versus ¥50.18.

• Comprehensive income increased to ¥3,347 million from ¥3,106 million, including ¥1,253 million of gains in available-for-sale securities valuation.

• Extraordinary income included ¥367 million from investment-security sales; extraordinary losses included ¥74 million from investment-security valuation.

Outlook and guidance

• FY2027 guidance: net sales ¥71,500 million (+10.5%), operating profit ¥8,000 million (+21.1%), ordinary profit ¥8,200 million (+17.5%), net income ¥5,530 million (+4.8%) and EPS ¥140.12.

• FY2027 annual dividend forecast is ¥80 per share; the second-quarter dividend is ¥45, including a ¥10 commemorative dividend, and the year-end forecast is ¥35.