BRUNO,Inc. FY2026 Q1 Earnings Report

Financial Highlights

• Net Sales: ¥3.46B
• Operating Income: ¥34M
• Net Income: ¥-37M
• EPS: ¥11.91

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment 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

BRUNO Co., Ltd. reported FY2026 Q1 consolidated results under JGAAP with revenue of ¥3,455 million (+3.0% YoY), gross profit of ¥1,379 million (gross margin 39.9%), and operating income of ¥34 million (+193.8% YoY). The operating margin improved to roughly 1.0%, indicating meaningful operating leverage from modest top-line growth, as SG&A appears tightly managed. Ordinary income reached ¥48 million, suggesting net non-operating income of about ¥14 million after ¥5 million in interest expense, likely from FX, investment income, or subsidies. Net income surged to ¥170 million (+345.3% YoY), well above ordinary income, implying sizable extraordinary gains (estimated c. ¥139 million) and/or tax effects. The implied effective tax burden for the quarter is low (tax expense of ¥17 million against an estimated pre-tax income of c. ¥187 million), consistent with one-off or non-taxable gains or the utilization of tax attributes. DuPont metrics show a quarterly net margin of 4.92%, asset turnover of 0.338x, and financial leverage of 1.92x, producing a point-in-time ROE of 3.19%; note this ROE is based on a single quarter and not annualized. Liquidity is strong with a current ratio of 299.5% and a quick ratio of 204.4%, backed by current assets of ¥8,625 million and current liabilities of ¥2,880 million. The balance sheet is moderately leveraged (total liabilities/equity ~0.99x) with total assets of ¥10,219 million and equity of ¥5,332 million. Inventories are ¥2,739 million; using quarterly COGS implies a DIO of roughly 125 days, which is reasonable for a branded lifestyle/home appliance business but warrants monitoring for seasonality and mix. Cash flow statement line items are unreported in this disclosure (zeros indicate non-disclosure, not actual zero), so operating cash conversion cannot be assessed this quarter. Dividend data are also not disclosed (DPS and payout show as zero due to non-disclosure), so no conclusion on capital return policy can be drawn from this filing alone. Overall profitability at the operating level improved from a low base while net profit was buoyed by non-recurring items; the sustainability of the net margin therefore requires caution. The company shows ample liquidity and manageable leverage, giving balance sheet flexibility for seasonal working capital needs. Key data limitations include the absence of cash flow details, equity ratio, and share count data in this extract, constraining cash conversion and per-share trend analysis. Near-term focus should be on the persistence of cost discipline, inventory management into peak seasons, and the nature of the one-off gains driving Q1 net income.

Profitability Analysis

ROE_decomposition: ROE (quarterly) 3.19% = Net margin 4.92% × Asset turnover 0.338 × Financial leverage 1.92. Net margin is elevated versus operating margin (~1.0%) due to non-operating and extraordinary gains. Asset turnover is calculated on Q1 revenue over period-end assets; on an annualized revenue basis, turnover would be higher. margin_quality: Gross margin of 39.9% indicates healthy product mix/branding in lifestyle goods. Operating margin of 1.0% suggests high SG&A intensity (¥1,345 million; ~38.9% of sales), but YoY operating profit growth (+193.8%) on +3.0% sales demonstrates improving cost control. Net margin of 4.92% notably exceeds ordinary and operating margins, implying significant below-the-line support (non-operating/extraordinary items) not necessarily repeatable. operating_leverage: Revenue +3.0% YoY with operating income +193.8% indicates strong operating leverage off a low base, likely aided by SG&A efficiencies and mix. Sustainability depends on maintaining gross margin and preventing SG&A from re-inflating as volumes scale, particularly during seasonal peaks.

Growth Assessment

revenue_sustainability: Top-line growth of +3.0% YoY is modest and likely reflects steady demand across core lifestyle and small appliance categories; seasonality (gift periods) may shift intra-year patterns. Pricing/mix likely contributed given stable-to-strong gross margin. profit_quality: Operating income growth is quality-improving given cost discipline; however, the gap between operating (¥34m), ordinary (¥48m), and net income (¥170m) suggests one-offs materially lifted bottom-line. The implied extraordinary gains (~¥139m) and low effective tax burden reduce the repeatability of Q1 net profit. outlook: Assuming stable consumer demand and disciplined SG&A, operating profitability can continue to normalize. Key variables are inventory sell-through into peak seasons, FX impacts on imports, and the absence/presence of further one-off gains. Near-term net profit growth will depend more on core operating performance than the non-recurring items seen in Q1.

Financial Health

liquidity: Current ratio 299.5% and quick ratio 204.4% indicate strong near-term liquidity. Working capital is ¥5,745 million, providing cushion for seasonally higher inventory and receivables needs. solvency: Total liabilities/equity of ~0.99x reflects moderate leverage; financial leverage (assets/equity) is 1.92x. Interest coverage at 6.8x (operating income/interest expense) is adequate but sensitive to quarterly volatility in operating profit. capital_structure: Equity is ¥5,332 million versus total assets of ¥10,219 million. The reported equity ratio is shown as 0.0% in the extract but appears unreported; based on provided totals, an implied equity ratio would be roughly 52%, though we refrain from stating it as official given disclosure limitations.

Cash Flow Quality

earnings_quality: Cash flow data are not disclosed in this extract (OCF/NI shown as 0.00 due to non-disclosure), so we cannot validate cash conversion for Q1. The significant gap between operating and net income suggests earnings quality at the net level is influenced by non-cash or non-recurring items. FCF_analysis: Free cash flow is not available due to absent OCF and capex data. With inventories of ¥2,739 million and seasonal dynamics, FCF will hinge on working capital movements in subsequent quarters. working_capital: Inventory days are approximately 125 days for the quarter (Inventory/COGS × ~90 days), broadly within range for branded goods but warrant monitoring. Receivables and payables are not disclosed here, limiting full cash conversion analysis.

Dividend Sustainability

payout_ratio_assessment: Dividend per share and payout ratio are shown as 0.00 in this extract due to non-disclosure; thus, we cannot assess payout discipline from this dataset. EPS for the quarter is ¥11.91, but one-offs inflate net profit, so using Q1 EPS as a base for payout analysis would be misleading. FCF_coverage: FCF coverage cannot be calculated due to unavailable cash flow data. Any assessment of dividend funding capacity would require OCF stability and capex visibility across multiple quarters. policy_outlook: Without disclosed DPS or a stated policy, we assume management prioritizes reinvestment and working capital flexibility typical for seasonal consumer products companies. Future disclosures should clarify policy, cadence (interim/final), and linkage to earnings/FCF.

Risk Assessment

Business Risks:

• Seasonality in demand for lifestyle and small appliance products affecting quarterly volatility.
• Inventory obsolescence risk given product cycles and fashion-driven categories.
• FX exposure on imported goods impacting gross margin.
• Channel concentration risk if reliant on specific retailers or e-commerce platforms.
• Competitive pricing pressure from global brands and OEM private labels.
• Product quality and recall risks affecting brand equity.

Financial Risks:

• Earnings reliance on non-operating/extraordinary gains in Q1 inflating net profit.
• Interest coverage sensitivity due to thin operating margin base.
• Working capital swings (inventory and receivables) potentially straining cash in peak seasons.
• Limited visibility on cash and capex due to non-disclosed cash flow statements in this period.

Key Concerns:

• Sustainability of net margin given large extraordinary gains implied in Q1.
• Maintaining SG&A discipline to preserve operating leverage as sales scale.
• Inventory turnover and sell-through ahead of key seasonal periods.
• FX-driven cost pressures and pricing power to protect gross margin.

Investment Implications

Key Takeaways:

• Modest revenue growth (+3.0% YoY) with strong operating leverage (+193.8% YoY operating income) from cost control.
• Net income significantly boosted by non-operating/extraordinary items; core profitability best reflected at operating level.
• Robust liquidity (current ratio ~300%, quick ratio ~204%) and moderate leverage (liabilities/equity ~0.99x).
• Inventory days ~125 signal manageable but important working capital oversight.
• Cash flow, dividend, and equity ratio data not disclosed in this extract, limiting cash conversion and capital return assessment.

Metrics to Watch:

• Operating margin trend and SG&A ratio to sales.
• Gross margin resilience vs. FX and product mix.
• Inventory turnover and working capital days (DIO, DSO, DPO) in subsequent quarters.
• Ordinary income composition (recurring vs. non-recurring) and extraordinary items.
• Cash from operations and capex once disclosed; OCF/NI ratio.
• Interest coverage as operating income scales.

Relative Positioning: Within Japan’s lifestyle/home appliance segment, BRUNO’s gross margin appears solid versus typical mid-30s peer benchmarks, but operating margins remain thin, implying less scale and higher SG&A intensity; balance sheet liquidity is comparatively strong, supporting execution through seasonal cycles.

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