Pola Orbis Holdings (4927) Q2 2026 earnings summary

Executive summary

• Consolidated net sales increased 1.3% year-over-year to ¥84,349 million in H1 FY2026, driven by ORBIS growth and steady overseas performance.

• Operating profit rose 21.1% year-over-year to ¥9,954 million, supported by higher gross profit and effective expense control.

• Ordinary profit surged 93.2% year-over-year to ¥12,135 million, mainly due to foreign exchange gains.

• Profit attributable to owners of parent increased 40.8% to ¥6,539 million, despite business restructuring expenses.

• POLA's revenue declined, but the rate of decline in the salon channel improved; overseas revenue rose, led by growth in China.

Financial highlights

• Gross profit rose 0.7% year-over-year to ¥68,518 million, while SG&A expenses decreased by ¥1,262 million.

• Operating margin improved from 9.9% to 11.8% year-over-year.

• Basic earnings per share increased to ¥29.55 from ¥20.99 year-over-year.

• Net assets per share stood at ¥730.06 at the end of the second quarter.

• Profit attributable to owners of parent increased 40.8% to ¥6,539 million, aided by foreign exchange gains and cost controls.

Outlook and guidance

• FY2026 full-year consolidated net sales forecast unchanged at ¥173,000 million, up 1.6% year-over-year.

• Operating profit projected at ¥17,300 million (+10.2%), with profit attributable to owners of parent at ¥9,000 million (-5.0%).

• Annual dividend forecast maintained at ¥52 per share, with a payout ratio of 127.8%.

• No revisions to the previously announced performance forecast.