Kobe Bussan put up a better first half in the six months to April 30, but management is not yet offering a richer promise for the year to October. Sales rose 5.1% from a year earlier to ¥286,172 million, operating profit increased 10.2% to ¥21,037 million, ordinary profit climbed 16.8% to ¥24,436 million, and net profit attributable to owners rose 15.7% to ¥16,501 million.
| Metric | First half result | Year on year | Full-year outlook |
|---|---|---|---|
| Sales | ¥286,172 million | 5.1% | ¥566,500 million, unchanged |
| Operating profit | ¥21,037 million | 10.2% | ¥43,000 million, unchanged |
| Ordinary profit | ¥24,436 million | 16.8% | ¥43,700 million, unchanged |
| Net profit attributable to owners | ¥16,501 million | 15.7% | ¥29,500 million, unchanged |
The key point is what did not change. Kobe Bussan kept its full-year outlook at sales of ¥566,500 million, operating profit of ¥43,000 million, ordinary profit of ¥43,700 million and net profit of ¥29,500 million, and said there was no revision to either earnings guidance or the planned year-end dividend of ¥32.00 per share. In its presentation, first-half sales represented 50.5% of the annual sales target, operating profit 48.9% of the operating target and net profit 55.9% of the net target.
How did the half improve? The company said the core Gyomu Super business added 20 stores and closed five, taking the total to 1,137 at April 30. Kobe Bussan attributed the sales gain to new store openings and solid product shipments to existing stores. It said price pass-through and procurement optimization helped lift gross profit despite higher sourcing costs, pushing gross margin to 12.4% from 11.6% and operating margin to 7.4% from 7.0%.
There were offsets. Selling, general and administrative expenses rose 14.9%, driven by higher freight and warehouse rent, as well as temporary operating outsourcing fees tied to a large M&A, according to the presentation. Ordinary profit still rose faster than operating profit, helped by foreign-exchange gains linked to the company's hedging activity. The half-year income statement showed a ¥2,537 million foreign-exchange gain, versus a foreign-exchange loss a year earlier.
That leaves the message stronger, but not upgraded. Kobe Bussan has better interim numbers, improving margins and continued store expansion, yet management is keeping the annual bar where it set it in December.