Takara Standard (7981) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales reached a record ¥125,330 million, up 1.8% YoY; operating profit fell 7.2% to ¥8,089 million and net income fell 7.6% to ¥6,418 million.

• Full-year forecasts were unchanged, with net sales of ¥259,000 million and operating profit of ¥19,100 million expected.

Financial highlights

• Gross profit rose to ¥44,168 million from ¥43,205 million; gross margin was 35.2%, up 0.1 percentage point YoY.

• SG&A rose to ¥36,078 million from ¥34,491 million, reflecting human-capital and IT investment, higher depreciation and other expenses.

• Ordinary profit was ¥8,507 million, down 5.6%; profit before income taxes was ¥9,422 million versus ¥10,097 million.

• Operating profit bridge included +¥1.5bn from sales, pricing and mix, offset by ¥1.1bn of Middle East-related costs and higher logistics, raw-material and personnel expenses.

• Comprehensive income increased 3.5% to ¥7,779 million; basic EPS was ¥101.57 versus ¥104.88.

Outlook and guidance

• FY2027 forecast: net sales ¥259,000 million (+2.5%), operating profit ¥19,100 million (+0.1%), ordinary profit ¥19,800 million (+0.6%) and net income ¥14,300 million (-5.1%).

• Forecast operating margin is 7.4%, down 0.2 percentage point; forecast ROE is 7.4%, below the 8.0% medium-term plan target.

• Forecast basic EPS is ¥226.15; interim and year-end dividends are ¥62 per share each, or ¥124 annually, up ¥8 YoY; no forecast revisions were made.

• H2 sales and earnings are expected to improve; material price adjustment fees in selling prices from September are expected to support margins, with a broad price revision scheduled for April 2027.

• Detached-house and remodeling sales are forecast to rise; multi-family housing sales are expected to return to YoY growth in H2 and be flat for the full year.