Kotobuki Spirits (2222) Q2 2026 earnings summary

Executive summary

• Net sales for FY2026 1Q-2Q rose 8.8% year-over-year to 35,787 million yen, driven by inbound and domestic sales, while net profit remained nearly flat due to increased manufacturing and raw material costs.

• Inbound sales increased 9.5% YoY, reaching 5,083 million yen.

• Three new stores were opened and three closed, including the first flagship store after the rebranding of “Tokyo Milk Cheese Factory.”

• Comprehensive income grew 1.2% YoY to 5,014 million yen.

Financial highlights

• Net sales: 35,787 million yen (+8.8% YoY); Gross profit: 21,526 million yen (+5.6% YoY); Operating profit: 7,441 million yen (−0.5% YoY); Net profit: 5,016 million yen (+0.5% YoY); EPS: 32.49 yen.

• Gross profit margin declined to 60.1% from 61.9% YoY due to higher material costs.

• SG&A expenses increased 9.2% YoY, with the expense ratio rising by 0.2 points.

• Net assets as of September 30, 2025, were 40,305 million yen, with an equity-to-asset ratio of 79.0%.

• Domestic wholesale sales grew 10.7% YoY; overseas sales rose 20.4% YoY, with notable growth in Australia and other regions.

Outlook and guidance

• FY2026 full-year forecast: Net sales projected at 79,670 million yen (+10.1% YoY), operating profit at 19,650 million yen (+11.6% YoY), and net profit at 13,400 million yen (+10.5% YoY).

• Capital investment plan for the year is 2.5 billion yen, with new store openings planned in favorable locations.

• Dividend per share forecast for FY2026 is 35 yen, with a policy to maintain a total return ratio of at least 50%.