Toei Animation (4816) Q2 2027 earnings summary

Executive summary

• H1 net sales rose 3.7% YoY to ¥46.612bn, the second-highest first-half result; operating profit fell 8.9% to ¥15.161bn, the third-highest for the period.

• Merchandising rights and Sales of Goods growth offset lower overseas streaming-rights sales; fewer high-margin contracts and higher investment-related SG&A weighed on profit.

Financial highlights

• H1 net sales were ¥46.612bn, up 3.7% YoY; gross profit was ¥25.203bn, up 1.6%, while SG&A rose 22.8% to ¥10.042bn.

• H1 operating profit was ¥15.161bn, down 8.9%; ordinary profit was ¥16.182bn, down 9.6%; parent-attributable profit was ¥11.893bn, down 8.4%.

• H1 comprehensive income rose 8.9% to ¥14.656bn; basic EPS was ¥58.23 versus ¥63.49 a year earlier.

• Q2 net sales were ¥24.578bn, down 3.5% YoY; operating profit was ¥7.695bn, down 23.5%, and net profit was ¥5.866bn, down 24.3%.

Outlook and guidance

• FY2027 revised forecast: net sales ¥98.2bn, operating profit ¥26.4bn, ordinary profit ¥27.7bn and parent-attributable profit ¥20.0bn.

• Forecast growth is 4.8% for sales, 14.9% for operating profit, 17.2% for ordinary profit and 20.2% for parent-attributable profit; basic EPS forecast is ¥97.94.

• Full-year operating profit forecast is ¥28.4bn excluding strategic investments; the revised second-half plan includes carryover factors and other items.

• H1 sales missed forecast mainly due to a delayed large-title delivery; operating profit exceeded plan on improved U.S. and European streaming-rights profitability and new clients.