Kanseki Co., Ltd. Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending February 2027

Performance Overview

In this interim period, net sales were 17,463 million yen, virtually flat with a Year-over-Year decrease of 0.6%. Operating income was 294 million yen, up 4.9% Year-over-Year. Ordinary income declined to 210 million yen, a 13.2% decrease, while interim net income improved to 231 million yen, up 9.1%. Interim net income per share was 31.01 yen, improving from the previous period. The full-year forecast is unchanged at net sales 36,200 million yen, operating income 550 million yen, ordinary income 390 million yen, and net income 320 million yen. By segment, home centers, specialty stores, WILD-1, and store development are the main earnings drivers; however, WILD-1 remains weak.

Outlook and Capital Position

Full-year forecasts are maintained. However, the decline in ordinary income in the interim period compared with the same period last year may be influenced by the underperformance of the WILD-1 business. On the financial side, total assets decreased and the capital adequacy ratio stands at 27.0%; dividend payment status is as noted. The company continues its new medium-term management plan "Kanseki RE DESIGN 2029," pursuing growth by strengthening BtoB operations and creating new businesses. Going forward, improvements in profitability are expected through optimizing capital efficiency, inventory, and personnel costs.