Happinet (7552) investor relations material

Executive summary

• Net sales for the 1st quarter of FY2026 rose 9.8% year-over-year to ¥105,281 million, with operating profit up 15.0% to ¥4,534 million and ordinary profit up 12.3% to ¥4,571 million.

• Profit attributable to owners of parent decreased 17.3% year-over-year to ¥2,746 million.

• Comprehensive income dropped 44.4% year-over-year to ¥2,437 million.

• Earnings per share for the quarter were ¥63.40.

Financial highlights

• Gross profit increased 10.7% year-over-year to ¥13,111 million in the 1st quarter of FY2026.

• SG&A expenses rose 8.5% to ¥8,577 million, with logistics and personnel costs also increasing.

• Total assets at the end of the quarter were ¥138,776 million, down from ¥144,003 million at the previous fiscal year-end.

• Net assets per share stood at ¥1,355.85.

• Net assets declined to ¥59,149 million from ¥60,285 million at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales projected at ¥450,000 million, up 2.5% year-over-year.

• Full-year operating profit forecasted at ¥15,800 million, up 1.3% year-over-year.

• Profit attributable to owners of parent expected to reach ¥10,500 million, a 4.0% increase year-over-year.

• Earnings per share for the full year projected at ¥240.15.

• The company expects continued growth in the toy and amusement businesses, focusing on expanding product lines and strengthening partnerships.