Arcs reports record sales, rising profits in first half of fiscal 2026

Arcs Group reported a strong performance for the second quarter (interim period) of the fiscal year ending February 2026, achieving record-high net sales of JPY3,136m, up 3.6% year-on-year. This growth was attributed to increased customer traffic and strategic initiatives, including strengthening local product and deli-related offerings. Gross profit also saw a significant increase of JPY28m, reaching JPY783m, with the gross profit margin improving by 0.1 percentage point year-on-year due to streamlined distribution and operational efficiencies.

Despite a JPY20m increase in selling, general, and administrative (SG&A) expenses, mainly due to a JPY17m rise in personnel costs, the company effectively controlled these expenses within budget. As a result, operating profit surged by 11.4% year-on-year to JPY79m. Ordinary profit also climbed by 9.8% to JPY87m, and net income attributable to owners of the parent increased by 14.3% to JPY57m, demonstrating broad-based profit growth.

Looking ahead, Arcs aims for JPY1 trillion in net sales and plans to achieve a 40% dividend payout ratio, targeting JPY74 per share for the fiscal year ending February 2026.