Yakult Honsha (2267) Q2 2026 earnings summary

Executive summary

• Net sales for H1 ended September 30, 2025, declined 5.5% year-over-year to ¥241.1 billion, with operating profit down 25% to ¥25.3 billion and profit attributable to owners down 10.8% to ¥24.5 billion, impacted by weak domestic demand, higher costs, and FX headwinds.

• Domestic business saw lower sales and profit, while overseas sales volume increased, with five consecutive quarters of growth in China and Vietnam achieving record monthly sales.

• Comprehensive income dropped sharply to ¥13,224 million, a 78.9% decrease year-over-year.

• The company is determined to recover in H2 through enhanced sales promotion, PR, and advertising in Japan, and expects overseas recovery, especially in Asia and Oceania.

• Profit attributable to owners was 4.3% above forecast, supported by gains from the sale of policy-holding stocks.

Financial highlights

• Net sales: ¥241.1 billion (94.5% YoY, 97.8% of forecast); operating profit: ¥25.3 billion (75.0% YoY, 93.8% of forecast); ordinary profit: ¥36.2 billion (80.1% YoY, 96.6% of forecast); profit attributable to owners: ¥24.5 billion (89.2% YoY, 104.3% of forecast).

• Foreign exchange had a significant negative impact, with a ¥10.9 billion effect on overseas net sales.

• A ¥2.1 billion gain on sales of investment securities was recorded, offset by an impairment loss related to the Guangzhou No. 1 plant.

• Gross profit decreased to ¥141,922 million from ¥152,874 million year-over-year.

• Total assets: ¥817 billion, down ¥47.2 billion from previous fiscal year-end; equity ratio: 68.8%, up 2.4 points.

Outlook and guidance

• Full-year net sales forecast revised downward to ¥489.5 billion (2.0% decrease YoY), operating profit to ¥48.5 billion (down 12.4%), and ordinary profit to ¥53.5 billion; profit attributable to owners forecast raised to ¥46.5 billion (102.2% YoY) due to asset sales.

• Basic EPS forecast raised to ¥158.57.

• Sales volumes are expected to recover in H2, with new campaigns and product launches planned.

• The annual dividend is projected at ¥66, up ¥2 from the previous year; FY2026 dividend forecast is ¥80 per share.