KOA reports strong Q2, unveils ambitious mid-term growth plan

KOA Corporation reported a significant increase in its Q2 FY2026 financial performance, with net sales reaching 177.9 billion yen, up 13.4% year-on-year. Operating profit surged by 229.9% to 8.1 billion yen, while ordinary profit increased by 19.2% to 10.9 billion yen. Net income attributable to shareholders saw a substantial rise of 75.4% to 7.4 billion yen. For the first half of FY2026, net sales were 346.3 billion yen, with operating profit at 13.1 billion yen and ordinary profit at 16.2 billion yen.

The company's "2027 Mid-Term Management Plan" aims for profit growth and efficiency, targeting net sales of 800 billion yen and an operating profit of 74 billion yen by FY227. ROIC is projected to improve to 4.7%, and ROE to 6.2%. The plan includes a focus on expanding into growth markets, strengthening material research, and developing innovative products. Key initiatives involve enhancing product portfolios, implementing ROIC-driven management, improving labor productivity, and reducing GHG emissions.

Capital allocation for 2025-2027 emphasizes approximately 300 billion yen in cash inflows and outflows, with 10 billion yen allocated to shareholder returns, 60 billion yen to capital expenditure, and 30 billion yen to debt repayment. The company aims for an annual dividend per share of at least 30 yen and a consolidated payout ratio of around 30%.