Synchro Food (3963) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 110.3% YoY to ¥3,895.9m, including ¥2,029.5m from Property Management; excluding that business, revenue was flat YoY.

• H1 operating profit fell 10.8% to ¥323.1m and net profit fell 26.5% to ¥154.1m; Q2 revenue rose 119.4% to ¥1,993m and operating profit rose 29.1% to ¥230m.

Financial highlights

• H1 gross profit was ¥2,177.3m, with a 55.9% gross margin versus 79.9% a year earlier; ordinary profit was ¥302.5m, down 5.3%.

• H1 EBITDA rose 64.6% to ¥627M; SG&A increased 65.5% to ¥1,854M, including ¥927M personnel expenses and ¥178M advertising expenses.

• Profit attributable to owners of parent was ¥154.1m; basic EPS was ¥5.49 versus ¥7.46, and comprehensive income was ¥153.9m versus ¥209.4m.

• Q2 operating profit margin was 11.5%, down 8.1 points YoY and up 6.7 points QoQ; revenue grew 4.8% QoQ.

Outlook and guidance

• FY2027 forecast unchanged: net sales ¥7,500m, operating profit ¥332m, ordinary profit ¥294m and parent-attributable profit ¥141m; forecast EPS ¥5.03.

• H1 progress against revenue and operating-profit guidance was 51.9% and 97.2%, respectively.

• H2 plans include strategic advertising investment to acquire job seekers for employment agency and pay-per-application services; H2 operating profit is expected below H1, with cost-effectiveness monitored.

• FY2027 annual dividend forecast remains ¥15 per share, comprising ¥0 at H1 and ¥15 at year-end.