Paltac (8283) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2026 rose 4.1% year-over-year to ¥625.1bn, driven by expansion in wholesaler portfolio, higher unit prices, and strong demand for high value-added and seasonal products, especially cosmetics.

• Operating profit declined 0.6% year-over-year to ¥13.8bn as higher SG&A expenses, mainly from increased personnel and logistics costs, offset gross profit gains.

• Gross profit increased 5.3% year-over-year, supported by price hikes and improved product mix.

• Ordinary profit fell 3.6% year-over-year to ¥15.6bn, and net profit decreased 6.4% to ¥11.1bn.

Financial highlights

• Net sales: ¥625.1bn (+¥24.7bn, +4.1% YoY); gross profit: ¥46.5bn (+5.3% YoY); operating profit: ¥13.8bn (−0.6% YoY).

• Ordinary profit: ¥15.6bn (−3.6% YoY); profit attributable to owners: ¥11.1bn (−6.4% YoY).

• Gross profit margin improved to 7.44% (+0.08pp YoY); SG&A ratio increased to 5.22% (+0.19pp YoY).

• Cash and cash equivalents at period end: ¥69.7bn.

• Cash flows from operating activities were ¥5,825 million, investing activities used ¥1,571 million, and financing activities used ¥4,404 million.

Outlook and guidance

• FY2026 full-year guidance maintained: net sales ¥1,230.0bn (+3.5% YoY), operating profit ¥29.0bn (+3.5% YoY), ordinary profit ¥32.2bn (+1.6% YoY), profit ¥22.0bn (−3.8% YoY), EPS ¥356.70.

• No revision to previously announced forecasts or dividend guidance.

• Continued focus on sales and profit growth despite challenging consumer and cost environment.

• Dividend per share expected to increase for the 16th consecutive year.