Kobe Bussan (3038) Q2 2026 earnings summary

Executive summary

• Net sales rose 5.1% year-over-year to ¥286.2 billion for the six months ended April 30, 2026, driven by new store openings and steady shipments to existing stores.

• Operating profit increased 10.2% year-over-year to ¥21.0 billion, with gross margin improving to 12.4%.

• Profit attributable to owners of parent grew 15.7% year-over-year to ¥16.5 billion.

• Expansion continued with a net increase of 15 Gyomu Super stores in H1, reaching 1,137 stores nationwide.

• The group focused on strengthening integrated food production and distribution, expanding store networks, and enhancing food safety initiatives.

Financial highlights

• Gross profit increased to ¥35,506 million from ¥31,679 million year-over-year, supported by price pass-through and procurement optimization.

• SG&A expenses rose 14.9% year-over-year due to higher logistics and M&A-related outsourcing costs.

• Ordinary profit surged 16.8% year-over-year to ¥24,436 million, aided by foreign exchange gains.

• Operating margin improved to 7.4%; net margin at 5.8%.

• Total assets grew to ¥269,421 million, and net assets to ¥172,329 million as of April 30, 2026.

Outlook and guidance

• FY2026 full-year net sales forecast at ¥566.5 billion, with 50.5% progress achieved by Q2.

• Operating profit forecast at ¥43.0 billion; profit attributable to owners of parent at ¥29.5 billion.

• Targeting a net increase of 32 Gyomu Super stores and 102%+ YoY growth in existing store sales.

• No changes to previously published financial forecasts.

• Focus on expanding private label product ratio and acquiring more savings-oriented consumers.