Yakult Honsha (2267) Q1 2027 earnings summary

Executive summary

• Net sales increased 3.3% year-over-year to ¥120.4 billion, driven by strong overseas growth and yen depreciation, while domestic food and beverage sales declined.

• Operating profit declined 7.5% year-over-year to ¥10.0 billion, mainly due to weaker domestic performance and higher costs.

• Profit attributable to owners of parent rose 17.2% year-over-year to ¥13.5 billion, supported by extraordinary income from investment securities sales.

• Comprehensive income surged to ¥21.3 billion from a loss in the prior year, aided by favorable foreign currency translation.

Financial highlights

• Net sales: ¥120.4 billion (+3.3% year-over-year); FX impact +¥6.1 billion.

• Operating profit: ¥10.0 billion (-7.5% year-over-year); FX impact +¥1.0 billion.

• Ordinary profit: ¥15.6 billion (-9.0% year-over-year); FX impact +¥1.2 billion.

• Basic EPS improved to ¥46.99 (+19.4% year-over-year), benefiting from share buybacks.

• Extraordinary income rose to ¥6.6 billion, mainly from gains on sales of investment securities.

Outlook and guidance

• No changes to interim and full-year earnings forecasts; full-year net sales forecast at ¥260.0 billion (+7.8% year-over-year).

• Full-year operating profit forecast at ¥22.5 billion (-11.2% year-over-year).

• Domestic price increases for 12 dairy products planned for October, expected to boost profits.

• Uncertainty remains due to the Middle East situation and global economic conditions; forecasts to be reviewed after Q2.