| Metric | Current | Prior | YoY |
|---|---|---|---|
| Revenue | ¥115.0B | ¥104.0B | +10.6% |
| Operating Income | ¥12.8B | ¥8.1B | +59.2% |
| Ordinary Income | ¥12.8B | ¥8.1B | +58.9% |
| Net Income | ¥8.9B | ¥5.6B | +58.8% |
| ROE | 8.0% | 5.4% | - |
Yamami Corporation's FY2026 Q2 results showed revenue of 115.0 billion yen (YoY +10.6%), operating income of 12.8 billion yen (YoY +59.2%), ordinary income of 12.8 billion yen (YoY +58.9%), and net income of 8.9 billion yen (YoY +58.8%). The company achieved strong profit growth significantly outpacing revenue expansion, driven by improved operational efficiency. Operating margin expanded to 11.2% from 7.8% in the prior year period, reflecting enhanced profitability. Basic earnings per share increased to 127.67 yen from 80.37 yen, up 58.9% year-over-year.
Revenue growth of 10.6% to 115.0 billion yen was achieved through expanded sales channels and market demand recovery. Cost of sales increased to 87.8 billion yen, while gross profit reached 27.2 billion yen with a gross margin of 23.6%. Operating profit expansion was driven by effective cost management, with selling, general and administrative expenses of 14.3 billion yen representing 12.4% of revenue, an improvement from the prior year's higher ratio. SG&A expenses grew in absolute terms but were well-controlled relative to revenue growth. Depreciation and amortization of 9.2 billion yen contributed to the cost structure, while capital expenditure of 5.8 billion yen remained below depreciation levels at a 0.64 ratio, indicating restrained investment spending. The gap between ordinary income (12.8 billion yen) and operating income (12.8 billion yen) was minimal, with interest expenses of 0.1 billion yen representing limited financial burden and an interest coverage ratio of 102.11 times. Net income of 8.9 billion yen reflects an effective tax rate of approximately 30.9%, derived from profit before tax of 12.9 billion yen. This represents a revenue up, profit up pattern with profit growth significantly exceeding revenue growth.
[Profitability] ROE of 8.0% demonstrates return on shareholder equity, with operating margin improving to 11.2% from 7.8% year-over-year, indicating enhanced operational efficiency. Net profit margin reached 7.7%, up from 5.4% in the prior period. Gross profit margin of 23.6% reflects pricing power and cost management capabilities. [Cash Quality] Cash and deposits totaled 12.4 billion yen, providing coverage of 2.48 times against short-term borrowings of 5.0 billion yen. Operating cash flow of 14.4 billion yen exceeded net income by 1.63 times, confirming strong cash generation quality. Free cash flow of 8.5 billion yen demonstrates surplus cash generation after capital investment. [Investment Efficiency] Total asset turnover stood at 0.658 times on an annualized basis. Days sales outstanding increased to 112 days, reflecting extended receivables collection periods requiring management attention. Capital expenditure to depreciation ratio of 0.64 indicates investment spending below asset replacement levels. [Financial Health] Equity ratio of 63.4% represents strong capitalization. Current ratio of 106.2% indicates adequate short-term liquidity, though below the 150% industry benchmark. Debt-to-equity ratio of 0.12 and debt-to-EBITDA of 0.61 times reflect conservative leverage levels with total interest-bearing debt of 13.4 billion yen.
Operating cash flow of 14.4 billion yen represents 1.63 times net income, confirming robust cash-backed earnings quality with an 86.0% year-over-year increase. The cash conversion rate of 0.66 against EBITDA suggests room for improvement in converting operating profit to cash. Investing cash flow of negative 5.9 billion yen was primarily driven by capital expenditure of 5.8 billion yen for maintenance and expansion activities. The capex-to-depreciation ratio of 0.64 indicates investment spending below depreciation levels, raising considerations about long-term asset renewal adequacy. Financing cash flow of negative 4.7 billion yen reflected dividend payments and debt servicing activities. Free cash flow of 8.5 billion yen provides a coverage ratio of 1.70 times against projected annual dividend payments, indicating sustainable dividend capacity. Cash and deposits increased by 3.8 billion yen or 44.9% year-over-year to 12.4 billion yen, strengthening the liquidity position. Working capital management requires attention as accounts receivable surged 11.0 billion yen or 51.4% to 35.1 billion yen, significantly outpacing revenue growth and extending collection cycles.
Ordinary income of 12.8 billion yen compared to operating income of 12.8 billion yen shows minimal non-operating impact, with net non-operating income approximating zero. Non-operating expenses of 0.1 billion yen primarily comprised interest expenses, representing 0.1% of revenue and indicating minimal financial burden. The effective tax rate of 30.9% derived from the relationship between net income of 8.9 billion yen and profit before tax of 12.9 billion yen reflects standard corporate taxation. Operating cash flow exceeded net income with a ratio of 1.63, indicating healthy earnings quality supported by cash generation. However, the cash conversion rate of 0.66 relative to EBITDA suggests working capital absorption, primarily driven by the 51.4% surge in accounts receivable. Days sales outstanding extended to 112 days, substantially exceeding typical industry standards and representing a key quality concern. The accruals ratio of negative 3.2% indicates earnings are supported by cash flows rather than accounting adjustments. No material extraordinary items, impairments, or restructuring charges were identified, suggesting core earnings sustainability.
The company projects full-year revenue of 230.0 billion yen (YoY +9.1%), operating income of 25.0 billion yen (YoY +44.7%), ordinary income of 24.9 billion yen (YoY +44.1%), and net income of 16.2 billion yen (YoY +7.7%). First-half progress rates stand at 50.0% for revenue, 51.4% for operating income, 51.4% for ordinary income, and 54.9% for net income against full-year guidance. All metrics track at or above the standard 50% benchmark for semi-annual progress, indicating solid execution momentum. The operating income progress rate exceeding 50% suggests stronger-than-expected profitability improvements in the first half. The net income progress rate of 54.9% reflects effective cost management and tax efficiency. Full-year earnings per share guidance of 232.23 yen and dividend forecast of 46.00 yen per share indicate management confidence in earnings trajectory. No mid-year guidance revisions were disclosed, suggesting stable business conditions aligned with initial planning assumptions.
Annual dividend forecast of 46.00 yen per share comprises interim and year-end dividends. Based on first-half net income annualized, the implied payout ratio approximates 56.4%, within sustainable distribution levels. Free cash flow of 8.5 billion yen provides dividend coverage of 1.70 times against total projected dividend payments of approximately 5.0 billion yen, confirming cash flow sustainability. No share buyback program was disclosed in the current period. The dividend policy balances shareholder returns with retained earnings for business investment, though the elevated payout ratio warrants monitoring given capital expenditure restraint. Total shareholder return through dividends remains the primary capital allocation priority in the absence of buyback activity.
Working capital deterioration poses the most immediate financial risk, with accounts receivable increasing 11.0 billion yen or 51.4% year-over-year to 35.1 billion yen, extending days sales outstanding to 112 days. This significant lengthening of collection cycles could strain liquidity and indicates potential credit quality concerns or lenient payment terms that require management intervention. Investment inadequacy represents a medium-term operational risk, as capital expenditure of 5.8 billion yen remains substantially below depreciation of 9.2 billion yen with a ratio of 0.64. Sustained underinvestment may compromise production capacity, asset quality, and competitive positioning in manufacturing operations. Food industry-specific risks include raw material price volatility and supply chain disruptions, which could pressure gross margins despite current profitability improvements, particularly given the company's exposure to commodity input costs and distribution networks.
[Industry Position] (Reference - Proprietary Analysis) Yamami Corporation demonstrates above-average profitability within the food manufacturing sector. Operating margin of 11.2% represents strong operational efficiency, with year-over-year expansion of 3.4 percentage points from 7.8% reflecting superior cost management. The company's revenue growth rate of 10.6% indicates solid market positioning and demand capture. ROE of 8.0% reflects moderate return generation on shareholder equity. The equity ratio of 63.4% represents conservative capitalization compared to typical food manufacturing leverage profiles. Days sales outstanding of 112 days appears extended relative to industry norms for the sector, where collection cycles typically range from 60 to 90 days. The capital expenditure to depreciation ratio of 0.64 suggests more restrained investment spending compared to industry peers who typically maintain ratios closer to 1.0 for asset replacement. Overall financial health indicators including debt-to-EBITDA of 0.61 times position the company favorably within its peer group. Source: Proprietary analysis of publicly available earnings data.
Yamami Corporation's first-half FY2026 results demonstrate strong earnings momentum with operating profit growing 59.2% significantly outpacing revenue growth of 10.6%, driven by enhanced operational leverage and cost discipline. The operating margin expansion to 11.2% from 7.8% represents a fundamental profitability improvement that strengthens the earnings quality profile. However, accounts receivable management emerges as a critical monitoring point, with the 51.4% surge extending collection cycles to 112 days and absorbing working capital that could otherwise support growth investments or shareholder distributions. The capital expenditure restraint at 64% of depreciation raises questions about long-term asset renewal adequacy and growth capacity, particularly as the company navigates competitive market dynamics requiring operational infrastructure investment. Cash generation remains robust with operating cash flow covering net income by 1.63 times and free cash flow providing 1.70 times dividend coverage, supporting the current 46 yen dividend forecast, though the elevated 56% payout ratio leaves limited earnings retention for reinvestment amid the constrained capex environment.
This report was automatically generated by AI analyzing XBRL earnings data as an earnings analysis tool. This is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled from publicly available earnings data. Please make investment decisions at your own responsibility and consult professionals as needed.