Koike-Ya’s profits fall in first half despite sales growth

Koike-Ya reported a 3.7% increase in consolidated net sales to JPY 29,962 million for the second quarter of the fiscal year ending March 2026. Despite the sales growth, operating profit saw a substantial decrease of 30.2% to JPY 1,447 million. Ordinary profit also fell by 30.7% to JPY 1,426 million.

The decline in profitability was attributed to increased manufacturing costs due to poor potato quality, higher raw material expenses, and increased personnel costs. Net profit attributable to owners of the parent company decreased by 34.6% to JPY 724 million (JPY 67.88 per share). Total assets increased to JPY 43,252 million from JPY 39,055 million at the end of the previous fiscal year, primarily due to higher construction in progress and cash and deposits.

Due to these factors, Koike-Ya has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026. The company now expects net sales of JPY 61,000 million (down 4.1% from previous forecast), operating profit of JPY 3,800 million (down 8.4%), ordinary profit of JPY 3,750 million (down 8.5%), and net profit attributable to owners of the parent of JPY 2,400 million (down 11.1%), translating to JPY 224.98 per share. The company will not issue a second-quarter dividend but projects a year-end dividend of JPY 55.00 per share.