Ricoh Leasing Company (8566) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 2.2% to ¥174,614m; record gross profit was ¥25,791m, up 1.1% YoY.

• Operating profit fell 8.2% to ¥10,190m and ordinary profit fell 12.3% to ¥9,995m; profit attributable to owners edged up 0.2% to ¥6,267m.

• FY2027 full-year forecasts were unchanged despite a ¥0.8bn solar-power-related extraordinary loss.

Financial highlights

• Profit before financial expenses rose 10.7% to ¥31.6bn, while financial expenses increased 89.3% to ¥5.8bn.

• SG&A rose 8.4% to ¥15,600m from ¥14,395m; doubtful-account provisions increased 33.0% to ¥0.9bn.

• Comprehensive income declined to ¥6,028m from ¥10,232m as other comprehensive income shifted to a ¥239m loss.

Outlook and guidance

• FY2027 forecasts: net sales ¥370,000m, up 9.3%; operating profit ¥17,600m, down 14.7%; ordinary profit ¥17,400m, down 17.3%; parent-attributable profit ¥11,900m, down 7.2%.

• Full-year EPS is forecast at ¥386.00; gross profit is forecast at ¥50.4bn, up 0.5%.

• Funding costs are expected to rise amid two anticipated FY2027 policy-rate hikes; the aim is to keep gross profit near the prior year’s level.

• Operating assets are forecast at ¥1,343.0bn at FY2027 year-end, up ¥59.7bn from FY2026 year-end.