Life Corporation (8194) Q2 2027 earnings summary

Executive summary

• H1 FY2027 operating revenue and sales reached first-half records, rising 2.3% to ¥450.051bn and 2.2% to ¥433.237bn; operating and ordinary profit were in line with plan.

• Operating profit fell 6.4% to ¥12.448bn, ordinary profit fell 5.7% to ¥13.063bn and profit attributable to owners of parent fell 7.9% to ¥8.589bn.

Financial highlights

• Gross profit rose 1.6% to ¥133.948bn as gross margin declined 0.2 percentage points to 30.9%; SG&A increased 2.6% to ¥138.313bn, with its growth rate the lowest in six years.

• Operating revenue receipts increased 3.1% to ¥16.813bn.

Outlook and guidance

• FY2027 guidance was unchanged: operating revenue ¥922.5bn, net sales ¥888bn, operating profit ¥27bn, ordinary profit ¥28bn and parent-attributable profit ¥19bn; forecast EPS was ¥219.61.

• Assumptions include 10 new stores, existing-store sales growth of 3.5% and gross-margin improvement of 0.2 percentage points; H2 priorities include sales growth, higher-value and private-label products, member promotions, waste reduction and labor productivity.