MatsukiyoCocokara & Co (3088) Q2 2026 earnings summary

Executive summary

• Achieved record-high sales and profits for the first half of FY2025, with net sales up 4.4% to ¥549,094 million and operating profit up 7.4% to ¥40,444 million, driven by strong cosmetics, private brand sales, and increased inbound and urban demand.

• Profit attributable to owners rose 6.2% to ¥26,517 million, and basic EPS increased to ¥66.42.

• Health and beauty category comprised 72.2% of sales, with PB product sales up 15% YoY and a 14.1% sales composition ratio.

• Cost containment and KPI management offset negative impacts from drug price revisions, declining COVID-19-related demand, and inflation.

• The company advanced differentiation, expanded store networks, launched new PBs, and enhanced digital integration.

Financial highlights

• Net sales: ¥549.1 billion (+4.4% YoY); Operating profit: ¥40.4 billion (+7.4% YoY); Operating profit margin: 7.4% (+0.2pt YoY).

• EBITDA: ¥51.8 billion (+6.0% YoY); EBITDA margin: 9.4%.

• Profit attributable to owners: ¥26.5 billion (+6.2% YoY); Basic EPS: ¥66.42.

• Free cash flow: ¥20.2 billion, down ¥15.2 billion YoY due to tax revisions and growth investments.

• Comprehensive income reached ¥27,444 million, up 9.2% YoY.

Outlook and guidance

• No change to FY2025 full-year forecast: Net sales ¥1.1 trillion (+3.6% YoY), operating profit ¥85.5 billion (+4.2% YoY), EBITDA ¥108.5 billion (+3.6% YoY), profit attributable to owners ¥56.5 billion (+3.3% YoY), basic EPS ¥141.52.

• Annual dividend forecast raised to ¥48 per share (+¥4 YoY), with a progressive dividend policy and flexible share buybacks.

• Targeting 1.3 trillion yen in net sales, 13%+ EBITDA margin, and 12%+ ROE by FY2031.