DyDo Group Holdings, the Osaka-based drinks and healthcare conglomerate behind Japan's ubiquitous roadside vending machines, turned a profit in the six months to July after posting a loss a year earlier. Net profit attributable to owners came in at ¥2.8bn, versus a ¥1.36bn loss in the same period last year, and operating profit jumped 388.2% to ¥6.74bn on sales of ¥120.1bn, up 2.0%.
Much of that swing is arithmetic rather than a demand rebound. The company booked an impairment charge in the prior fiscal year that lowered this year's depreciation expense, and it trimmed sales commissions through what it calls "Smart Operation" efficiency measures. Overseas beverages did the heavy lifting on growth: segment sales rose 25.3% to ¥36.0bn and segment profit rose 68.1% to ¥5.23bn, led by the Turkish subsidiary's push into carbonated drinks and repeated price increases against a backdrop of persistent high inflation and a weak lira.
That Turkish growth carries an accounting cost. Because cumulative Turkish inflation has exceeded 100% over three years, DyDo applies IAS 29 hyperinflation accounting to its Turkish units, restating their results to period-end price levels. The adjustment cut this period's ordinary profit by ¥2.92bn, a bigger hit than the ¥1.41bn deducted a year earlier, reflecting DyDo's own upward revision of its year-end inflation forecast for Turkey to 28.6% from an initial 21%.
At home, the story is retreat rather than growth. Domestic beverage sales fell 5.5% to ¥67.6bn as DyDo deliberately pulled unprofitable vending machines from unproductive locations, a response to a widening price gap between vending machines and other retail channels. Segment profit still improved to ¥2.11bn from a ¥2.03bn loss, helped by the lower depreciation and cost discipline rather than more machines selling more drinks.
On the back of the interim numbers, DyDo raised its full-year profit guidance for the year to January 2027 even as it trimmed the sales outlook slightly.
| Metric | Previous Forecast | Revised Forecast | Change |
|---|---|---|---|
| Sales | ¥246.8bn | ¥246.3bn | -0.2% |
| Operating profit | ¥10.5bn | ¥12.3bn | +17.1% |
| Ordinary profit | ¥8.4bn | ¥9.4bn | +11.9% |
| Net profit attributable to owners | ¥5.0bn | ¥6.0bn | +20.0% |
The company also declared an interim dividend of ¥15 a share, totaling ¥477mn, payable from September 24, and disclosed that its wholly owned DyDo Drinco subsidiary set up a new wholly owned unit, Alliance Vendors, in January 2026. Its rare-disease drug business, built around the Lambert-Eaton myasthenic syndrome treatment Fadapus launched last year, grew sales 79.8% to ¥473mn and narrowed its segment loss to ¥80mn from ¥184mn. Separately, DyDo's chief executive filed a confirmation letter with the Kinki Local Finance Bureau certifying that the interim report's disclosures comply with Japan's financial instruments law, with no special matters noted.