Yamato Kogyo Co (5444) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 10.3% YoY to ¥84,046 million; operating profit fell 88.7% to ¥224 million, while ordinary profit reached ¥46,071 million and parent profit rose 44.0% to ¥27,556 million.

• U.S. affiliate earnings and a weaker yen supported the outlook, offsetting continued weakness in Japan; FY2027 forecasts were revised upward for sales, ordinary profit and parent profit, but downward for operating profit.

Financial highlights

• Gross profit was ¥9,413 million versus ¥10,534 million YoY; operating profit was ¥224 million versus ¥1,994 million.

• Ordinary profit increased to ¥46,071 million from ¥27,928 million, mainly reflecting equity-method earnings of ¥41,745 million versus ¥21,093 million.

• Profit attributable to owners of parent rose to ¥27,556 million from ¥19,133 million; basic EPS was ¥461.17 versus ¥310.82.

• Comprehensive income was ¥37,374 million versus a loss of ¥11,162 million in the prior-year period.

Outlook and guidance

• FY2027 forecast: net sales ¥180,000 million (+12.2% YoY), operating profit ¥2,200 million (-51.1%), ordinary profit ¥95,500 million (+46.4%), parent profit ¥62,000 million (-0.6%) and EPS ¥1,037.59.

• Versus prior guidance, sales increased ¥2,000 million, operating profit decreased ¥1,000 million, ordinary profit increased ¥8,500 million and parent profit increased ¥4,500 million.

• U.S. affiliate profit is expected to exceed prior guidance; Japan’s operating loss is expected to deepen, while Thailand is expected to exceed its profit forecast.

• Indonesia profit is expected below prior guidance; Vietnam slightly above, and South Korea in line with prior guidance.

• Forecast exchange rates include ¥157.14/$ average and ¥152.00/$ at year-end; actual results may differ due to business conditions and other factors.