Tokai Rika's sales grew in the six months to September 2026, but profit did not follow. Consolidated sales rose 5.8% to ¥333.1bn, while operating profit fell 17.7% to ¥17.6bn and profit attributable to owners of the parent fell 49.0% to ¥9.9bn.
Where the costs landed
In Japan, the company's largest segment, sales rose 9.6% to ¥173.2bn on higher customer production volumes. Segment operating profit fell 71.1% to ¥367mn, which the company attributed to higher raw-material prices and rising fixed costs. Selling, general and administrative expenses rose to ¥30.6bn from ¥26.5bn a year earlier, while gross profit edged up to ¥48.2bn from ¥47.9bn. In the company's operating-profit bridge, raw-material prices took ¥4.2bn and higher fixed costs ¥4.7bn, against ¥3.3bn from currency moves and ¥3.2bn from cost improvement.
The gap between operating and net profit was wider than the operating decline alone. The year-earlier half included a ¥2.57bn gain on sales of investment securities; this year had none. North America and Asia also reported lower operating profit, down 27.9% and 5.0%, on lower customer production volumes. The release says these are the company's own results and does not claim a wider supplier trend.
Returns held, guidance unchanged
The board kept full-year guidance as published in May: sales of ¥650bn, operating profit of ¥30bn and net profit of ¥20bn. It set the interim dividend at ¥60 a share, equal to its July forecast and up from ¥55 a year earlier, a total of ¥5.2bn payable from 26 November 2026.
It also authorised a buyback of up to 2.6mn shares, or 2.9% of shares outstanding excluding treasury stock, at a total cost of up to ¥8.6bn. Purchases run from 29 October to 31 December 2026 through the exchange's ToSTNeT-3 off-hours facility, and all shares acquired are to be cancelled. The company ties the programme to the shareholder-return policy in its Tokai Rika Vision 2030 plan. The figures are ceilings, not completed spending. Cancellation is scheduled for the last day of the month after the month in which buying ends, or the preceding bank business day if that day is not a bank business day, and the company will announce the number of shares to be cancelled once the purchases are complete.