| Metric | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥216.3B | ¥208.5B | +3.8% |
| Operating Income | ¥13.2B | ¥13.1B | +1.0% |
| Ordinary Income | ¥13.0B | ¥13.3B | -2.0% |
| Net Income | ¥8.8B | ¥8.9B | -1.5% |
| ROE | 8.4% | 9.1% | - |
For FY2026 Q3 YTD (9 months), Revenue was ¥216.3B (YoY +¥7.8B +3.8%), Operating Income was ¥13.2B (YoY +¥0.1B +1.0%), Ordinary Income was ¥13.0B (YoY -¥0.3B -2.0%), and Net Income was ¥8.8B (YoY -¥0.1B -1.5%). While top-line growth continued, operating profit growth was limited to +1.0%, and Ordinary Income and Net Income turned to a decline. Gross margin improved slightly to 38.7% (prior year 38.6%), but with an increase in SG&A expenses to ¥70.5B, the Operating Margin declined to 6.1% (prior year 6.3%). Full-year guidance is Revenue ¥275.0B (YoY +4.8%), Operating Income ¥6.0B (YoY -8.6%), Ordinary Income ¥6.0B (YoY -10.9%), and Net Income ¥4.2B (YoY -8.3%), implying a margin decline in Q4. Total assets expanded to ¥240.8B, up +¥53.7B YoY, mainly due to a sharp increase in Accounts Receivable to ¥70.2B (+¥37.7B, +114.2%), indicating pronounced working capital pressure. Meanwhile, Cash and Deposits decreased by -¥9.4B (-36.4%) to ¥16.5B; with a Short-term Debt Ratio of 58.5% and cash coverage of 0.53x against Short-term Borrowings of ¥31.0B, liquidity quality deteriorated. The Equity Ratio fell to 43.7% (prior year 52.4%), and financial leverage rose to 2.29x. ROE was 8.4%, improving from last year and remaining above the industry median of 5.2%. The company plans dividends of ¥9.0 at mid-year and ¥9.0 at year-end, totaling ¥18.0, with a Payout Ratio of 20.1%, which is conservative. Accounts receivable days of approximately 118 and inventory days of approximately 56 have lengthened, worsening working capital efficiency; improving asset efficiency and restoring cash generation are key challenges.
[Profitability] ROE 8.4% (improved from the prior year level, above the industry median of 5.2%), Operating Margin 6.1% (down -0.2pt from 6.3% in the prior year, 1.2pt above the industry median of 4.9%), Net Margin 4.1% (down -0.2pt from 4.3% in the prior year, 0.7pt above the industry median of 3.4%), Gross Margin 38.7% (+0.1pt from 38.6% in the prior year). [Cash Quality] Cash and Deposits ¥16.5B (down -¥9.4B from ¥25.9B in the prior year), Short-term Debt Cash Coverage 0.53x (Cash ¥16.5B / Short-term Borrowings ¥31.0B). [Investment Efficiency] Total Asset Turnover 0.90x (declined from 1.11x in the prior year, above the industry median of 0.61x), Accounts Receivable Days approximately 118 days (47 days above the industry median of 71 days), Inventory Days approximately 56 days (5 days above the industry median of 51 days), Accounts Payable Days approximately 50 days (14 days below the industry median of 64 days). [Financial Soundness] Equity Ratio 43.7% (down -8.7pt from 52.4% in the prior year, -4.3pt below the industry median of 48.0%), Current Ratio 117.3% (below the industry median of 176%), Quick Ratio 98.9%, Debt-to-Capital Ratio 1.29x, Short-term Debt Ratio 58.5%, Financial Leverage 2.29x (above the industry median of 2.01x).
Cash and Deposits decreased by -¥9.4B YoY to ¥16.5B, and the cash-to-total-assets ratio fell to 6.8% (prior year 13.8%). In working capital efficiency, Accounts Receivable surged from ¥32.7B to ¥70.2B, up +¥37.7B (+114.2%), expanding far faster than the +3.8% growth in Revenue. Accounts receivable days were approximately 118, exceeding the industry median of 71 by 47 days, suggesting that relaxed collection terms or collection delays are straining cash flow. Inventories increased from ¥13.4B to ¥18.4B, up +¥5.0B (+37.2%), with inventory days of approximately 56 slightly above the industry median of 51. Meanwhile, Accounts Payable increased from ¥21.3B to ¥32.9B, up +¥11.7B (+54.7%), indicating some progress in optimizing payment terms through supplier credit utilization, but insufficient to offset the increase in receivables. Short-term Borrowings stood at ¥31.0B; with Cash and Deposits of ¥16.5B, short-term debt cash coverage remained at 0.53x, and the Short-term Debt Ratio was a high 58.5%, increasing liquidity risk. Property, plant and equipment such as buildings, structures, and land increased, confirming capital expenditures; however, contribution to FCF is estimated to be limited due to declining asset efficiency. While details of Operating Cash Flow are not disclosed, the combination of higher receivables and reduced cash suggests OCF is relatively weak versus Net Income of ¥8.8B, indicating fragile cash backing for earnings.
With Ordinary Income at ¥13.0B versus Operating Income at ¥13.2B, non-operating income/expenses resulted in a net -¥0.2B. In the same period last year, Ordinary Income was ¥13.3B and Operating Income was ¥13.1B, so non-operating swung from a +¥0.2B positive to a -¥0.2B negative, a deterioration of ¥0.4B. Interest expense was booked at ¥0.2B; while the interest burden relative to interest-bearing debt is limited, it increased versus last year. The breakdown of non-operating income is unknown, but higher non-operating expenses reduced the conversion ratio from Operating Income to Ordinary Income to 98.5% (prior year 101.5%). The quality of Operating Income shows Gross Profit of ¥83.7B against SG&A expenses of ¥70.5B, resulting in Operating Income of ¥13.2B; the SG&A ratio edged up to 32.6% (prior year 32.3%). The sharp rise in receivables combined with reduced cash makes it likely that OCF is below Net Income of ¥8.8B, highlighting challenges in cash realization of profits. The impact of extraordinary gains/losses is limited, and earnings on an ordinary basis depend on Operating Income. Profit growth has decelerated, with Revenue up +3.8% versus Operating Income up +1.0%, as SG&A increases offset gross margin improvements. Given the deterioration in non-operating results and the working capital deterioration from higher receivables, the quality of earnings is assessed as slightly weakening.
[Position within Industry] (Reference information, company research) Profitability: ROE 8.4% (3.2pt above the industry median of 5.2%, upper-tier level), Operating Margin 6.1% (1.2pt above the industry median of 4.9%), and Net Margin 4.1% (0.7pt above the industry median of 3.4%), indicating relatively strong profitability within the industry. Soundness: Equity Ratio 43.7% (-4.3pt below the industry median of 48.0%), Current Ratio 117.3% (well below the industry median of 176%), placing short-term liquidity at a lower level within the industry. Financial Leverage is somewhat high at 2.29x (industry median 2.01x), with debt reliance above the industry average. Efficiency: Total Asset Turnover 0.90x (above the industry median of 0.61x, efficient), but Accounts Receivable Days 118 (industry median 71) and Inventory Days 56 (industry median 51) are above industry averages, indicating inferior working capital efficiency. Operating working capital days are estimated at approximately 124, well above the industry median of 62. Industry: Food & Beverage (N=13 companies), Comparison set: 2025-Q3 reporting period, Source: Company aggregation
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. The industry benchmark is reference information aggregated by our company based on publicly available financial statements. Investment decisions are your own responsibility; consult a professional as needed before making any investment decisions.