CALBEE,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥165.75B
• Operating Income: ¥10.16B
• Net Income: ¥11.15B
• EPS: ¥54.33

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Calbee (2229) reported FY2026 Q2 consolidated results under JGAAP showing resilient topline growth but notable margin compression. Revenue rose 5.5% YoY to ¥165.7bn, indicating steady demand across the portfolio. Gross profit reached ¥53.9bn, translating to a gross margin of 32.5%, which is healthy for a snacks/processed foods company but suggests some input cost or mix pressure relative to profit trends. Operating income declined 31.9% YoY to ¥10.2bn, with operating margin at 6.1%, indicating higher SG&A and/or cost inflation outpaced pricing/mix benefits. Ordinary income of ¥10.4bn exceeded operating income by ~¥0.24bn, implying modest net non-operating gains. Net income fell 36.2% YoY to ¥6.8bn, with net margin at 4.1%, reflecting operating deleverage and a normalized tax burden. DuPont decomposition yields ROE of 3.14% (net margin 4.10% × asset turnover 0.519 × leverage 1.48), highlighting margin compression as the primary headwind. Liquidity is strong, with a current ratio of 240% and working capital of ¥78.1bn, providing ample buffer for operations and investment. The balance sheet is conservative, with liabilities/equity at 0.48x; using reported totals, an implied equity ratio approximates ~67.7%, despite a disclosed equity ratio placeholder of 0.0%. Operating cash flow was robust at ¥27.4bn, 4.0x net income, indicating strong earnings quality and working capital discipline in the period. EBITDA of ¥15.7bn (9.4% margin) offers additional comfort on interest coverage (57.7x). Investing cash flow and cash/equivalents were undisclosed (shown as zero), so free cash flow and net cash positions cannot be verified from this dataset. Dividend per share and payout metrics were not disclosed; EPS was reported at ¥54.33, but share count and BVPS were not available. Overall, fundamentals show healthy sales momentum and cash generation capacity, offset by near-term profitability pressure and operating deleverage. Data limitations (notably C&CE, CapEx/Investing CF, share data, and dividends) constrain precision on FCF and capital return assessments, but available metrics support a view of solid financial health and liquidity.

Profitability Analysis

ROE_decomposition: ROE 3.14% = Net margin 4.10% × Asset turnover 0.519 × Financial leverage 1.48. Margin compression is the dominant drag; asset turnover is moderate for the category; leverage is low, limiting ROE amplification. margin_quality: - Gross margin: 32.5% (¥53.9bn/¥165.7bn). Operating margin: 6.1% (¥10.2bn/¥165.7bn). Net margin: 4.1%. The sharp YoY decline in operating profit (-31.9%) versus revenue (+5.5%) suggests higher COGS and/or SG&A inflation, limited pricing power in the period, and adverse mix. Ordinary income exceeded operating income by ~¥0.24bn, indicating small net non-operating gains but not enough to offset operating pressure. Estimated effective tax rate ~35% (income tax ¥3.66bn / (net income + income tax ≈ ¥10.45bn)), consistent with normalized taxation. operating_leverage: Revenue growth of +5.5% accompanied by a -31.9% decline in operating income indicates negative operating leverage this half, implying fixed cost absorption issues and/or elevated promotional spending. EBITDA margin at 9.4% vs operating margin at 6.1% shows D&A burden of ~3.3pp; cost control and price/mix improvements will be key to re-expand margins.

Growth Assessment

revenue_sustainability: Topline growth of 5.5% YoY suggests steady volume and/or pricing contributions and resilient category demand. Absent segment disclosure, sustainability hinges on continued market share retention, product innovation, and geographic mix. profit_quality: Net income declined 36.2% despite revenue growth, reflecting tighter margins and operating deleverage. Ordinary income slightly above operating income points to limited support from non-operating items. OCF significantly exceeded net income (4.0x), a positive indicator for earnings quality in the period. outlook: Key to inflecting earnings will be regaining pricing power, easing input costs (e.g., commodities, logistics), and disciplined SG&A. If cost inflation moderates and price/mix sticks, operating margins have room to normalize. Conversely, persistent cost pressure or intensified competition could cap near-term profit recovery despite stable sales.

Financial Health

liquidity: Current ratio 240.3%, quick ratio 195.1%, and working capital ¥78.1bn indicate strong short-term liquidity. Cash and equivalents were not disclosed; however, sizeable current assets vs current liabilities provide comfort. solvency: Total liabilities/equity at 0.48x and implied equity ratio ~67.7% (¥216.1bn/¥319.3bn) reflect a conservative balance sheet. Interest coverage is 57.7x, indicating negligible near-term refinancing risk. capital_structure: Leverage is modest (financial leverage 1.48x), providing balance sheet flexibility for investment and shareholder returns when appropriate. Financing CF of +¥3.33bn suggests net inflow this period (mix of debt/equity movements and/or lower dividends), but details are undisclosed.

Cash Flow Quality

earnings_quality: OCF/Net income at 4.04x (¥27.4bn/¥6.79bn) indicates strong cash conversion, aided by working capital inflows and non-cash charges (D&A ¥5.50bn). FCF_analysis: Investing CF is undisclosed (shown as zero), so CapEx and free cash flow cannot be reliably calculated. EBITDA of ¥15.7bn and robust OCF suggest capacity to fund maintenance investment while preserving internal funding, but the exact FCF outcome is indeterminable. working_capital: High current ratio and OCF strength imply effective working capital management in the half. Inventory of ¥25.1bn appears manageable relative to scale; further detail (days inventory, receivables) is not disclosed, limiting precision.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio were not disclosed (reported as zero placeholders). With EPS at ¥54.33, a sustainable payout would typically be assessed against multi-year earnings stability and target capital policy, which are not provided. FCF_coverage: Free cash flow is not computable due to missing investing/CapEx data. OCF of ¥27.4bn provides a cushion for dividends in principle, but without CapEx and actual dividends paid, coverage cannot be concluded. policy_outlook: Given the conservative balance sheet and strong liquidity, the company appears positioned to maintain a balanced capital allocation framework. However, absent stated policy and DPS, no inference on changes to dividends can be made from this dataset.

Risk Assessment

Business Risks:

• Input cost inflation (commodities, oil-linked logistics, packaging) compressing margins
• Competitive pricing pressure in snack/processed foods categories
• Product mix shifts toward lower-margin SKUs
• Foreign exchange volatility impacting imported raw materials and overseas operations
• Execution risk in pricing and promotional strategy

Financial Risks:

• Margin compression leading to lower cash generation if costs remain elevated
• Potential working capital normalization reducing OCF versus H1 strength
• Concentration risk in a few core product lines impacting earnings volatility
• Limited non-operating income support to offset operating weakness

Key Concerns:

• Negative operating leverage despite topline growth
• Visibility on CapEx and FCF is limited due to undisclosed investing cash flows
• Dividend policy and payout trajectory are not disclosed, reducing clarity on shareholder returns

Investment Implications

Key Takeaways:

• Solid revenue growth (+5.5% YoY) but significant operating income decline (-31.9%) indicates cost pressure and operating deleverage
• ROE at 3.14% is depressed by compressed net margins; leverage is conservative
• Liquidity and solvency are strong (current ratio 240%, liabilities/equity 0.48x)
• OCF strength (¥27.4bn; 4.0x net income) underpins earnings quality
• Limited disclosure on investing cash flows and dividends constrains FCF and payout analysis

Metrics to Watch:

• Gross and operating margin trends (pricing, mix, and cost pass-through)
• CapEx and investing cash flows (to assess FCF and reinvestment needs)
• OCF conversion and working capital movements
• Commodity and logistics cost indicators
• Ordinary income vs operating income gap (non-operating gains/losses)
• Effective tax rate normalization

Relative Positioning: Within Japan’s packaged foods peer set, Calbee exhibits strong balance sheet strength and cash generation but currently faces margin headwinds that suppress ROE relative to history and peers; restoring price/mix and cost discipline will be key to re-rating fundamentals.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis