OOMITSU CO.,LTD. Q2 FY2026 earnings call

• Overall Financial Results: Total consolidated interim revenue reached 37.871 billion yen, up 3.9% YoY, marking a new all-time high for the interim period. The company recorded an operating loss of 39 million yen (a 319 million yen YoY decrease in profit), ordinary profit of 116 million yen (down 60.5% YoY), and net profit attributable to parent company shareholders of 92 million yen (down 407 million yen YoY). The profit decline was driven by higher personnel and logistics costs, the seafood segment loss, and the absence of the 394 million yen in special compensation income recorded in the prior year interim.
• Strategic Business Priorities:
  • Gaisho Business: Continue deepening transactions with existing clients and expanding new clients across diverse segments including catering, institutional food services, and healthcare; strengthen private brand (PB) product sales to improve gross margin; continue optimizing delivery routes, delivery frequency, and warehouse operations to cut logistics costs.
  • Amica Business: Completed 2 planned new store openings in the interim period, reaching 54 total stores as of November 2025; expand product assortment for household consumers, increase promotional activities via social media, and improve distribution and warehouse logistics efficiency to support store growth. The online shop continues to perform well with 8.1% YoY revenue growth.
  • Seafood Products Business: Deepen relationships with high-quality domestic clients including conveyor belt sushi chains, canned food manufacturers, and food wholesalers; continue shifting export volumes to non-China markets amid persistent uncertainty over China's import policy.
• Core Competitive Advantages:
  • Diversified three-segment business structure covering all customer segments from large food service operators to small businesses and general consumers.
  • Amica's specialized business model: A non-membership business-focused supermarket with 6,000 SKUs that caters to professional buyers while also attracting cost-conscious general consumers.
  • Strong private brand product portfolio across three brands (O!Marche, Pro's Choice, JFDA), with strict quality control and 200+ SKUs covering multiple product categories to meet diverse customer needs.
• Shareholder Return Policy: The company maintains a progressive dividend policy targeting a 3.0%+ dividend on equity ratio. For the 2026 May Term, it plans a full-year dividend of 15 yen per share (7.5 yen interim, 7.5 yen year-end), marking the 4th consecutive year of dividend increases.

1. Gaisho (Foreign Trade) Business: Revenue of 25.18 billion yen, 6.0% YoY increase, contributing 66.5% of total consolidated revenue. Operating profit reached 282 million yen, a 4.4% YoY increase, driven by higher gross profit from revenue growth and logistics cost reduction efforts. 2. Amica Business: Revenue of 11.568 billion yen, 1.3% YoY increase, contributing 30.5% of total consolidated revenue. Existing stores saw a 107 million yen revenue decrease, offset by 189 million yen from new stores and 71 million yen from online shop growth. Operating profit was 408 million yen, a 28.4% YoY decrease, due to slow same-store sales growth, higher opening costs for new stores, and rising general expenses. 3. Seafood Products Business: Revenue of 1.186 billion yen, 12.3% YoY decrease, contributing 3.1% of total consolidated revenue. Export sales fell by 219 million yen due to unexpected Chinese import restrictions. Operating loss stood at 179 million yen, a 204 million yen YoY deterioration, impacted by lower revenue and a 161 million yen inventory write-down from a product damage accident.

• Full-year 2026 May Term guidance targets total revenue of 78.6 billion yen, which would be a new all-time high. Operating profit is projected at 660 million yen (a decrease from the prior full year, driven by the interim seafood business profit decline), while ordinary profit and net profit attributable to parent shareholders are projected at 820 million yen and 550 million yen respectively, which are maintained at the prior year level after accounting for higher operating expenses.

• Persistent uncertain outlook for China's import policy for Japanese seafood: The company projected ~1 billion yen in scallop exports to China in the interim after a bilateral export resumption agreement, but China implemented an unexpected import suspension in mid-November, leading to large revenue and profit declines for the seafood segment. Export prospects for China remain unclear.
• Rising operating costs: Sustained increases in personnel costs (from base pay raises), logistics/transportation costs, and utility costs have pressured profitability across all segments.
• Operational accident risk: A product damage accident at a contracted third-party warehouse in the interim led to a 161 million yen inventory write-down in the seafood segment, which was the primary driver of the consolidated operating loss. While the company received 174 million yen in compensation recorded as non-operating income, this did not fully offset the negative impact to operating profit.
• Weak consumer demand: Rising consumer cost-cutting sentiment amid general price increases has pressured same-store sales growth for the Amica retail segment.

The provided transcript does not include a recorded question and answer section.