Trial Holdings (141A) Q2 2026 earnings summary

Executive summary

• 1H FY6/2026 consolidated results exceeded plan in both sales and profit, with operating profit 60.4% above forecast and net profit 5.1 times the target, driven by the full acquisition of SEIYU and strong store performance.

• Net sales for the six months ended December 31, 2025, rose 67% year-over-year to ¥674,117 million, with EBITDA up 125% to ¥36,018 million and operating profit up 71.9% to ¥16,677 million.

• Eight new subsidiaries, including Seiyu Co., Ltd., were added to the consolidation scope during the period, expanding the total store count to 611.

• Goodwill (¥298.8bn, 20 years) and related amortization (approx. ¥7.6bn in 1H) were recorded, along with M&A-related borrowings (approx. ¥367.4bn) and one-off costs in Q1.

• Profit attributable to owners of parent decreased 33.8% year-over-year to ¥4,057 million, and basic earnings per share dropped to ¥33.17 from ¥50.27.

Financial highlights

• Net sales rose 67.0% YoY to ¥674.1bn; gross profit doubled (+100.2%) to ¥160.3bn; operating profit up 71.9% YoY to ¥16.6bn.

• Gross profit margin improved by 4.0pts to 23.8%; operating profit margin at 2.5%.

• EBITDA reached ¥36.0bn, up 225.4% YoY; EBITDA margin for the six months ended December 31, 2025, was approximately 5.3%.

• Ordinary profit grew 85.4% YoY, absorbing one-time loan structuring fees.

• Total assets surged to ¥850,466 million as of December 31, 2025, up from ¥300,283 million at June 30, 2025.

Outlook and guidance

• No change to the consolidated forecast for FY6/2026; full-year net sales projected at ¥1,322.5bn and operating profit at ¥25.4bn.

• Profit attributable to owners of parent is expected to decline 37.4% to ¥13,900 million.

• TRIAL targets further GPM improvement and OP growth through store expansion, pricing strategies, and SEIYU integration synergies.

• SEIYU to focus on revitalizing existing stores and upfront investments to rebuild customer loyalty.

• Annual dividend forecast is ¥16.00 per share, unchanged from the previous year.