Life Corporation (8194) Q2 2026 earnings summary

Executive summary

• Operating revenue for H1 FY2025 reached a record high of ¥440.1 billion, up 4.3% year-over-year, driven by new store openings, online supermarket expansion, and private brand initiatives.

• Ordinary profit increased 9.1% year-over-year to ¥13.8 billion, supported by productivity improvements and cost optimization.

• Net profit attributable to owners of parent rose 4.6% year-over-year to ¥9.3 billion.

• Extraordinary losses of ¥1,237 million were recorded for a distribution center acquisition, partially offset by ¥786 million in extraordinary income from share sales.

• Comprehensive income declined 1.4% year-over-year to ¥8,847 million.

Financial highlights

• Gross profit ratio improved by 0.4 percentage points year-over-year to 31.1%.

• SG&A expenses increased 5.3% year-over-year, mainly due to proactive pay rises and higher property costs.

• Cash flows from operating activities increased by ¥13.9 billion year-over-year to ¥70.4 billion.

• Cash and cash equivalents at period-end totaled ¥36,158 million, up 26.5% year-over-year.

• Net sales reached ¥423,805 million, up 4.3% year-over-year.

Outlook and guidance

• Full-year FY2025 forecast remains unchanged: operating revenue of ¥885.0 billion (+4.1%), net sales of ¥852.0 billion (+4.0%), and net profit of ¥18.0 billion (+0.3%).

• Earnings per share forecast for the year is ¥208.05.

• Existing store sales expected to grow 3.2% year-over-year, with gross profit ratio targeted to rise by 0.2–0.3 percentage points.

• Dividend forecast for FY2025 is ¥65 per share post-split, with a payout ratio of 31.2%.

• No change to previously announced earnings forecasts; management will monitor economic and consumer trends.