Calbee (2229) Q2 2026 earnings summary

Executive summary

• Net sales increased by 5.5% year-over-year in H1 to ¥165,746 million, but operating profit declined by 31.9% to ¥10,158 million, missing internal targets and impacted by higher costs and delayed price adjustments.

• Full-year forecasts were revised downward due to H1 results, potato procurement challenges, and cost pressures, with recovery measures planned for H2.

• Domestic sales and volumes grew, but profit was impacted by higher costs and a shortfall in summer sales.

• Overseas sales achieved double-digit growth in local currency, but profit was pressured by continued cost issues in the UK and Indonesia.

• Profit attributable to owners of parent dropped 36.2% to ¥6,788 million.

Financial highlights

• H1 net sales: ¥165.7bn (+5.5% YoY), operating profit: ¥10.2bn (-31.9% YoY), net profit: ¥6.8bn (-36.2% YoY).

• Domestic sales: ¥123.7bn (+5.2% YoY), overseas sales: ¥42.1bn (+6.6% YoY).

• EBITDA: ¥18.4bn (-14.7% YoY), EBITDA margin: 11.1% (-2.6pts YoY).

• Operating margin fell to 6.1% from 9.5% YoY.

• Gross profit was ¥51,869 million, down from ¥53,880 million YoY.

Outlook and guidance

• Full-year net sales forecast revised to ¥339.0bn (up 5.1% YoY, -¥6.0bn from initial plan), operating profit to ¥26.0bn (down 10.5%, -¥3.8bn), net profit to ¥17.5bn (down 16.2%, -¥3.0bn).

• H2 focus: mitigate potato shortages domestically and improve overseas profitability through productivity and cost control.

• Growth guidance for FY2026/3 now expects lower ROE (8.5%) and consolidated profit growth rate (-11%).

• Forecasts lowered due to weaker autumn potato harvest and cost pressures.