ARIAKE JAPAN (2815) investor relations material

Executive summary

• Consolidated net sales reached ¥15.99 billion, up 3.8% year-on-year but 2.1% below plan, with strong domestic and European performance offset by sluggish China results.

• Consolidated operating profit was ¥2.55 billion, down 2.2% year-on-year but 3.4% above plan; consolidated profit fell 11.3% year-on-year due to lower operating profit and foreign exchange/tax impacts.

• Non-consolidated net sales rose 2.5% year-on-year to ¥11.40 billion, with operating profit down 4.7% year-on-year but up 9.4% from plan; profit exceeded plan by 20.3%.

• Consolidated net profit fell 11.3% year-on-year and 10.8% below plan, impacted by lower operating profit, foreign exchange gains, and tax effects from subsidiary dividends.

Financial highlights

• Consolidated operating profit margin was 15.9%, down 0.1 points year-on-year but up 0.8 points from plan; non-consolidated margin was 15.1%, down 1.1 points year-on-year but up 1.1 points from plan.

• Subsidiaries' net sales grew 7.2% year-on-year, with Europe driving growth and China remaining weak; operating profit up 3.6% year-on-year.

• Export sales surged 32% year-on-year due to a one-time factor; B2B2C sales up 7.9% year-on-year.

Outlook and guidance

• No revision to the full-year earnings forecast; strong domestic and European markets are expected to offset Asian sluggishness.

• External factors such as Middle East instability and exchange rates remain uncertain, but operating profit is forecast to align with plan.

• Sales for the first half are projected to exceed plan, with new business in foodservice and pet food expected to contribute.

• Sales initiatives are being implemented in anticipation of the April 2027 food consumption tax reduction.

• Pet food business to begin manufacturing in October, with expansion of ODM products planned.