Sugi Holdings (7649) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 8.1% YoY to ¥540,713 million and operating profit increased 4.4% to ¥24,747 million; both were below budget at 98.7% and 92.7%, respectively.

• H1 profit attributable to owners of parent fell 54.6% YoY to ¥12,989 million.

• Revised full-year guidance includes four months of Seki Yakuhin consolidation; sales forecast increased from the prior Q1 revision while operating profit was reduced.

Financial highlights

• H1 gross profit rose 8.5% to ¥169,019 million, while SG&A increased 9.3% to ¥144,272 million.

• Q2 net sales rose 6.2% YoY to ¥270,537 million; operating profit fell 1.2% to ¥12,537 million, or 88.3% of budget.

• H1 EBITDA increased 3.3% to ¥34,638 million; ordinary profit declined 1.3% to ¥23,911 million.

• H1 comprehensive income fell 55.4% to ¥13,011 million; basic EPS was ¥35.69 versus ¥79.06, adjusted for the 2-for-1 stock split.

Outlook and guidance

• Revised full-year net sales are ¥1,117,900 million (+10.6% YoY), operating profit ¥51,000 million (+5.0%), ordinary profit ¥51,400 million (+2.7%), and attributable profit ¥27,400 million (-39.1%).

• Revised full-year EBITDA is ¥72,500 million (+5.6% YoY); gross profit is ¥355,600 million (+10.7%) and SG&A ¥304,600 million (+11.7%).

• H2 revised sales are ¥577,186 million (+13.1% YoY), operating profit ¥26,252 million (+5.6%), and attributable profit ¥14,410 million (-11.9%).

• H2 retail same-store sales are forecast at +3.0% and gross-margin improvement at +0.4pt YoY, excluding Seki Yakuhin; assumptions were reduced from +4.2% and +0.5pt.

• Split-adjusted full-year EPS is forecast at ¥73.62; the year-end dividend forecast is ¥10 per share after the split, equivalent to ¥20 pre-split.