| Metric | This Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue | ¥1355.5B | ¥1181.5B | +14.7% |
| Operating Income | ¥170.3B | ¥153.5B | +10.9% |
| Ordinary Income | ¥173.2B | ¥156.0B | +11.0% |
| Net Income | ¥113.1B | ¥107.4B | +5.3% |
| ROE | 2.7% | 2.6% | - |
FY2026 Q1 (Jan–Mar) results achieved revenue of ¥1,355.5B (YoY +¥174.0B, +14.7%), Operating Income ¥170.3B (YoY +¥16.7B, +10.9%), Ordinary Income ¥173.2B (YoY +¥17.2B, +11.0%), and Net Income ¥113.1B (YoY +¥5.7B, +5.3%), representing higher sales and profits. Japan and Asia led the company with high margins, while the Americas recorded revenue +30.1% but Operating Income -38.9% (turning to lower profit), and Europe remained at a low Operating Margin of 0.6%. Gross margin was 38.2% (prior year 38.0%, +0.2pt improvement), supported by price revisions and mix effects, but rising SG&A ratio to 25.6% (prior year 25.1%, +0.5pt deterioration) led to an Operating Margin of 12.6% (prior year 13.0%, -0.4pt decline). Allocation of goodwill and intangible asset amortization to segments began this period (Americas ¥14.2B, Europe ¥5.5B) and ultra-inflation accounting impact at the Turkey subsidiary in Europe (¥8.5B) widened regional margin dispersion. Progress toward the full-year plan stands at Revenue 26.1%, Operating Income 30.6%, Ordinary Income 29.4%, above the standard (25%), suggesting upside potential in the first half.
Revenue of ¥1,355.5B was up +14.7% YoY. By segment: Japan ¥650.2B (+7.1%), Americas ¥351.6B (+30.1%), Asia ¥236.2B (+15.6%), Europe ¥144.8B (+16.3%) — all regions achieved revenue growth. By product: ice makers ¥227.2B (prior year ¥209.2B, +8.6%), refrigerators ¥441.9B (prior year ¥335.3B, +31.8%), dishwashers ¥99.2B (prior year ¥90.0B, +10.2%) with core products showing steady growth; maintenance & repair ¥192.3B (prior year ¥167.4B, +14.9%) expanded as recurring revenue. Revenue mix: Japan 47.9%, Americas 25.9%, Asia 17.4%, Europe 10.7%; overseas ratio reached 52.1%. Contract liabilities were ¥477.8B (prior year ¥442.8B, +7.9%), indicating increased advance-payment-like liabilities and firm order-based demand. Americas’ large revenue increase was driven by refrigerator expansion and acquisition effects; Asia grew via market share gains in China and Southeast Asia; Japan benefited from price revisions taking hold and expanded maintenance services.
Profitability: Cost of sales ¥838.3B (cost ratio 61.8%, prior year 61.9%, -0.1pt) yielded a gross margin of 38.2% (prior year 38.0%, +0.2pt). However, SG&A ¥346.9B (SG&A ratio 25.6%, prior year 25.1%, +0.5pt) compressed Operating Margin to 12.6% (Operating Income ¥170.3B, prior year 13.0%, -0.4pt). SG&A growth +17.2% exceeded revenue growth +14.7%, primarily due to higher personnel and logistics costs in the Americas and ultra-inflation effects in Europe. Non-operating items: interest income ¥5.5B vs. interest expense ¥7.4B, FX gains ¥3.1B vs. FX losses ¥5.9B, producing a net non-operating income of ¥2.9B (prior year ¥2.5B). Ordinary Income ¥173.2B (ordinary income margin 12.8%, prior year 13.2%, -0.4pt). Extraordinary items were negligible (extraordinary gains ¥1.1B, extraordinary losses ¥0.0B), pre-tax income ¥174.3B, income taxes ¥61.2B (effective tax rate 35.1%), resulting in Net Income ¥113.1B (net margin 8.3%, prior year 9.2%, -0.9pt). In summary, despite revenue and profit increases, margin deterioration occurred due to higher SG&A and adverse interest & FX.
Japan segment: Revenue ¥650.2B (+7.1%), Operating Income ¥114.5B (+12.3%), Operating Margin 17.6% (prior year 16.8%, +0.8pt) — a high-profit engine representing 67% of consolidated Operating Income. Price revisions and expanded maintenance/repair services supported margin improvement. Americas segment: Revenue ¥351.6B (+30.1%) delivered strong top-line growth but Operating Income ¥11.8B (-38.9%), Operating Margin 3.3% (prior year 7.2%, -3.9pt) — significant profit decline. Growth was driven by refrigerator business expansion (¥96.1B vs. prior ¥29.0B), but allocation of goodwill and intangible amortization from this period (¥14.2B) and personnel/logistics inflation pressured profits. Adjusted Operating Income (excluding goodwill & intangible amortization) was ¥26.0B, down -32.5% YoY, indicating a downward profit trend even excluding amortization allocation. Asia segment: Revenue ¥236.2B (+15.6%), Operating Income ¥43.1B (+23.0%), Operating Margin 18.3% (prior year 17.2%, +1.1pt) — high growth and high profitability driven by share gains in China and Southeast Asia. Europe segment: Revenue ¥144.8B (+16.3%), Operating Income ¥0.9B (+115.4%), Operating Margin 0.6% (prior year 0.5%, +0.1pt) — marginal profit increase. Ultra-inflation accounting impact at the Turkey subsidiary (¥8.5B) and goodwill/intangible amortization (¥5.5B) weighed heavily; adjusted Operating Income (excluding amortization & ultra-inflation) was ¥14.9B (+113.0% YoY), showing improving underlying profitability but still low absolute levels.
Profitability: Operating Margin 12.6% (prior year 13.0%, -0.4pt), Ordinary Income Margin 12.8% (prior year 13.2%, -0.4pt), Net Margin 8.3% (prior year 9.2%, -0.9pt) — declines across all profit stages. Gross Margin 38.2% (prior year 38.0%, +0.2pt) reflecting price/mix improvement, but SG&A Ratio rose to 25.6% (prior year 25.1%, +0.5pt) compressing operating profitability. By segment, Japan 17.6% and Asia 18.3% maintain high levels, while Americas 3.3% and Europe 0.6% widen regional gaps. ROE on an annualized basis is 10.8% (quarterly 2.7% × 4), unchanged from the prior year period annualized 10.8% (quarterly 2.7%).
Cash quality: Non-operating items relative to Revenue were +2.1% (prior year +2.1%), roughly flat, comprised of interest income 0.4%, interest expense 0.5%, and net FX -0.2%, indicating worsening interest & FX environment. Working capital indicators: Accounts receivable ¥921.5B (68% of Revenue, prior year ¥767.4B, +20.1%) — DSO extension, Inventories ¥360.4B (26.6% of Revenue, prior year ¥354.6B, +1.6%) — elevated days of inventory. These factors suggest elongation of the cash conversion cycle. Contract liabilities ¥477.8B indicate advance-like receipts but are offset by rising receivables.
Investment efficiency: Total asset turnover annualized 0.93x (quarterly Revenue ¥1,355.5B × 4 ÷ Total Assets ¥5,834.9B), improved from prior 0.82x but still below 1x. Fixed asset turnover annualized 2.27x (Revenue × 4 ÷ Fixed Assets ¥2,396.8B), up from 2.03x, indicating improving asset efficiency.
Financial soundness: Equity Ratio 71.2% (prior year 71.9%, -0.7pt) remains very high. Current Ratio 240.1% (prior year 252.4%, -12.3pt), Quick Ratio 214.9% (prior year 225.4%, -10.5pt) — strong liquidity. Interest-bearing debt ¥70.5B (short-term borrowings ¥70.5B) vs. Cash & Deposits ¥1,583.5B yields Net Cash ¥1,513.0B and Debt/Equity 0.017x (prior year 0.015x), effectively debt-free.
Quarterly cash flow statement data was not disclosed, but balance sheet movements inform liquidity trends. Cash & Deposits fell to ¥1,583.5B (prior year ¥1,770.9B, -¥187.4B). Large increase in Accounts Receivable to ¥921.5B (prior year ¥767.4B, +¥154.1B), slight rise in Inventories to ¥360.4B (prior year ¥354.6B, +¥5.8B), and increase in Accounts Payable to ¥400.2B (prior year ¥362.6B, +¥37.6B) suggest working capital expansion consumed cash. Contract liabilities increased to ¥477.8B (prior year ¥442.8B, +¥35.0B) providing advance-like inflows, but receivables growth outweighed this, implying Operating Cash Flow was slow relative to profit growth. Treasury stock purchases amounted to -¥251.0B (prior year -¥185.3B, -¥65.7B increase), indicating shareholder returns in financing cash flow. Interest-bearing debt rose slightly to ¥70.5B (prior year ¥63.9B, +¥6.6B); together with cash decline, this implies modest borrowing and share buybacks ran in parallel to offset weak operating cash generation. Accumulation of contract liabilities signals future cash inflows, but improving receivables and inventory efficiency will be key to free cash flow recovery.
Of Ordinary Income ¥173.2B, Operating Income ¥170.3B is the main component, indicating high core earnings stability. Non-operating items: interest income ¥5.5B, interest expense ¥7.4B, FX gains ¥3.1B, FX losses ¥5.9B for a net +¥2.9B contribution — small net effect with offsetting interest and FX pressures. Extraordinary items: extraordinary gains ¥1.1B (fixed asset disposals ¥0.8B, available-for-sale securities disposals ¥0.2B), extraordinary losses ¥0.0B — negligible impact on pre-tax income of ¥174.3B. Comprehensive income was ¥163.3B, ¥50.2B higher than Net Income ¥113.1B, mainly due to positive Foreign Currency Translation Adjustments of ¥50.6B. Yen depreciation increased the translated net assets of foreign subsidiaries, boosting other comprehensive income though not P&L. Non-operating FX net was -¥2.8B, but FX translation added +¥50.6B to comprehensive income via the balance sheet, offsetting P&L negatives. Effective tax rate 35.1% (Income Taxes ¥61.2B ÷ Pre-tax Income ¥174.3B) is somewhat high, possibly due to tax adjustments or foreign tax rate differentials. Adjusted Operating Income (excluding goodwill & intangible amortization ¥22.7B and ultra-inflation impact ¥8.5B) is ¥201.5B, about 18.3% higher than reported Operating Income ¥170.3B, reflecting how JGAAP goodwill amortization reduces reported profit relative to IFRS peers.
Full-year forecasts remain: Revenue ¥5,200.0B (YoY +7.0%), Operating Income ¥556.0B (YoY +7.1%), Ordinary Income ¥590.0B (YoY +4.8%), Net Income ¥382.0B (prior-year comparison not provided). Q1 progress rates versus full-year plan: Revenue 26.1% (vs. standard 25% +1.1pt), Operating Income 30.6% (+5.6pt), Ordinary Income 29.4% (+4.4pt), Net Income 29.6% (+4.6pt) — all ahead of standard, showing front-loaded progress. Operating and Ordinary Income outperformance is driven by persistent high profitability in Japan and Asia and price revision effects, indicating upside potential in H1. However, unless Americas’ profit decline and Europe’s low profitability improve in H2, full-year margin expansion may be limited. Contract liabilities ¥477.8B (prior year ¥442.8B) and robust backlog support high probability of achieving the revenue plan. Full-year planned Operating Margin is 10.7% (plan vs. Q1 actual 12.6%), suggesting conservative assumptions for H2 margin dilution; if Q1 momentum continues, upward revisions are possible.
Annual dividend forecast is ¥55 (prior year ¥50, +¥5 +10.0%), implying a Payout Ratio of 20.2% against full-year EPS forecast ¥271.72 — a conservative level. Q1 EPS ¥79.39 (annualized ¥317.6); the ¥55 dividend equates to a payout ratio of 17.3% against annualized EPS, leaving room for additional increases if profits outpace plan. Share buybacks continue, with Treasury Stock movement -¥251.0B (prior year -¥185.3B, -¥65.7B increase) expanding significantly. Full-year buyback scale is undisclosed, but ¥65.7B of treasury stock was acquired in Q1, implying potentially larger annual amounts. Total Return Ratio (dividend + buybacks): based on Q1 buybacks ¥65.7B and Q1 Net Income ¥113.1B, the ratio is roughly 58% for Q1; combined with dividends, Total Return Ratio exceeds 75%. With Net Cash ¥1,513.0B and Equity Ratio 71.2%, financial capacity to increase payout and total returns is ample and sustainability of shareholder returns is assessed as very high.
Regional margin disparity risk: Americas Operating Margin 3.3% (prior year 7.2%, -3.9pt) and Europe 0.6% (prior year 0.5%, +0.1pt) remain low. In the Americas, allocation of goodwill & intangible amortization ¥14.2B (which represents 54.7% of adjusted Operating Income ¥26.0B) and cost inflation weigh heavily; in Europe, Turkey ultra-inflation accounting impact ¥8.5B (57.0% of adjusted Operating Income ¥14.9B) structurally depresses profits. Without cost reductions or price pass-through in these regions, consolidated Operating Margin will remain under pressure. On an adjusted basis, Americas -32.5% decline persists, and Europe, while improving, remains low in absolute terms — adverse regional mix could dilute consolidated profitability.
Working capital efficiency deterioration risk: Accounts Receivable ¥921.5B (prior year ¥767.4B, +20.1%) increased faster than sales growth +14.7%, extending DSO to approximately 68 days (accounts receivable equal 68% of Revenue). Inventories ¥360.4B (+1.6%) keep DIO at about 97 days (26.6% of Revenue). Accounts Payable ¥400.2B (+10.4%) extended DPO, but CCC remains long, weakening operating cash generation. Cash & Deposits declined to ¥1,583.5B (-10.6%), highlighting that cash generation has not kept pace with profit growth. Continued collection delays or inventory buildup could necessitate additional working capital investment and raise the risk of free cash flow turning negative.
Interest & FX headwinds: Non-operating results show interest income ¥5.5B vs. interest expense ¥7.4B (net -¥1.9B) and FX gains ¥3.1B vs. FX losses ¥5.9B (net -¥2.8B), totaling a ¥4.7B loss. Slight increase in short-term borrowings to ¥70.5B and rising interest rates trend could increase interest burden and pressure Ordinary Income. FX: comprehensive income benefited from translation adjustments +¥50.6B while P&L saw FX losses -¥2.8B; yen weakness boosts balance sheet valuation but transaction-level FX losses occur. Continued volatility in Turkish and other emerging currencies could expand ultra-inflation accounting effects and FX losses.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 12.6% | 6.8% (2.9%–9.0%) | +5.7pt |
| Net Margin | 8.3% | 5.9% (3.3%–7.7%) | +2.4pt |
Both Operating and Net Margins significantly exceed manufacturing medians, reflecting pricing power and high value-added business model in commercial kitchen equipment.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 14.7% | 13.2% (2.5%–28.5%) | +1.5pt |
Revenue growth slightly exceeds the median, driven by overseas expansion and price revisions.
※ Source: Company compilation
High-profit segments in Japan and Asia account for 85% of consolidated Operating Income (Operating Income Japan & Asia ¥157.6B ÷ ¥170.3B), maintaining Operating Margins above 17%. Strong backlog (Contract Liabilities ¥477.8B) and expanding recurring revenue via maintenance & repair ¥192.3B (+14.9%) support stable domestic and Asian growth. Q1 Operating Income progress of 30.6% vs. full-year plan standard suggests upside potential in H1.
Low-profit Americas and Europe contributed only ¥12.7B of Operating Income (7.5% of consolidated), and even adjusted Operating Income after removing goodwill & intangible amortization ¥19.7B (Americas ¥14.2B + Europe ¥5.5B) and ultra-inflation ¥8.5B totals just ¥40.9B (24% of consolidated). Americas adjusted Operating Income ¥26.0B (prior ¥38.5B, -32.5%) indicates continued profit decline excluding amortization allocation; Europe adjusted Operating Income ¥14.9B (prior ¥7.0B, +113.0%) shows improvement but remains low in absolute terms. Correcting regional profitability is a medium-term priority; progress in price pass-through and cost optimization is key to consolidated margin improvement.
Financial strength is very high: Net Cash ¥1,513.0B, Equity Ratio 71.2%, Current Ratio 240.1% — liquidity risk is minimal. Share buybacks continue (Treasury Stock -¥65.7B YoY in Q1), and Total Return Ratio exceeds 75%. Dividend payout at 20.2% is conservative; outperformance could allow additional dividend increases. However, deteriorating working capital efficiency (Accounts Receivable +20.1%, Cash -10.6%) is notable; improving collections and inventory management to shorten the cash conversion cycle is a prerequisite for enhancing free cash flow and expanding shareholder returns.
This report is an AI-generated earnings analysis document created by analyzing XBRL financial disclosure data. It is not a recommendation to invest in any specific security. Industry benchmark data are compiled by the company from public filings as reference information. Investment decisions should be made at your own responsibility and, where appropriate, after consulting a professional advisor.