PIOLAX (5988) Q2 2026 earnings summary

Executive summary

• FY25 continues to face a challenging business environment, with decreased revenue and profit in the first half compared to the previous year, but results are roughly in line with the plan.

• Net sales for the six months ended September 30, 2025, decreased by 5.9% year-over-year to ¥30,060 million.

• Operating profit dropped 33.5% year-over-year to ¥845 million, and profit attributable to owners of parent fell 64.5% to ¥435 million.

• Strategic focus on product development, organizational restructuring, and productivity improvements, including the new Moka Plant and a reform promotion project.

• Regional strategies emphasize sales expansion in North America, China, and India, with investments in new plants and enhanced local operations.

Financial highlights

• FY25 sales forecast at ¥620 billion, down from ¥633 billion in FY24; operating profit forecast at ¥21 billion, down from ¥23 billion.

• 1H FY25 sales at ¥300 billion, down ¥19 billion year-over-year; operating profit at ¥8.4 billion, down ¥4.2 billion.

• Net profit for 1H FY25 at ¥4.4 billion, down ¥7.9 billion year-over-year.

• Gross profit for the period was ¥6,606 million, down from ¥7,310 million year-over-year.

• Ordinary profit declined 56.4% year-over-year to ¥787 million.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2026, is ¥62,000 million, a 2.1% decrease year-over-year.

• Operating profit is projected at ¥2,100 million (down 11.9%), and profit attributable to owners of parent at ¥1,200 million (down 33.1%).

• Targeting ROE of 8% or higher by FY27.

• Sales expected to recover to ¥660 billion in FY26 and ¥690 billion in FY27, with operating profit rising to ¥46 billion and ¥63 billion, respectively.

• Annual dividend forecast remains unchanged at ¥92.00 per share.