Arata Corporation · TSE:2733
Arata — Q2 FY2026 Earnings Presentation
17 slides from Arata's earnings presentation, November 2025
Slide 1: ARATA Corporation Q2 of Fiscal Year Ending March 2026 Financial Results
NOTICE The slides in this presentation has been translated using a mechanical automatic translation service. In some cases, the translation may be inaccurate or unintended. Please use this service with the understanding that translations are not always accurate. ARATA Corporation Q2 of Fiscal Year E
Slide 2: Q2 FY03/2026 results
Q2 FT03/2026 results 2
Slide 3: Q2 FY03/2026 Highlights
Q2 FY03/2026 results ■ Q2 FY03/2026 Highlights Q2 FY03/2026 11 consecutive years of record-high Net sales ✓ Sales growth in the H&B and Pets categories ✓ Q1 and August slump due to climatic ✓ Sales growth in the drugstore and discount factors store sector ✓ Decline in gross profit margin ✓ Increased
Slide 4: Consolidated Statements of Income
Q2 FY03/2026 results ■ Consolidated Statements of Income Q2 Q2 Vs. FY03/2025 FY03/2026 YoY change planning Q2 FY03/2026 Planning (Millions of JPY) Results Results Change Rate (%) Rate (%) Net sales 491,522 503,299 11,776 102.4 515,000 97.7 Gross profit 48,641 49,412 771 101.6 - - SG&A expenses 40,46
Slide 5: Consolidated Statements of Income (Accounting period)
Q2 FY03/2026 results ■ Consolidated Statements of Income (Accounting period) Q1 Q2 YoY change YoY change FY03/2025 FY03/2026 FY03/2025 FY03/2026 (Millions of JPY) Rate (%) Rate (%) Net sales 245,604 251,192 102.3 245,918 252,106 102.5 Gross profit 24,726 24,909 100.7 23,914 24,503 102.5 SG&A expense
Slide 6: Q2 FY03/2026 Factors: Net sales
Q2 FY03/2026 results ■ Q2 FY03/2026 Factors Net sales: Record highs achieved for the 11th consecutive year Shortfall of interim target Net sales : JPY503.299 billion YoY: +JPY11.776 billion 102.4% Q2 FY03/2026 Cumulative Net sales YoY 102.4% ・ Sales growth in the existing focus categories (H&B and p
Slide 7: Net Sales by Category (YoY)
Q2 FY03/2026 results ■ Net Sales by Category (YoY) (Millions of JPY) 156,129 160,000 149,310 Q2 FY03/2025 Q2 FY03/2026 104.6% 120,000 95,539 94,342 92,221 91,945 99.2% 80,000 71,368 70,797 103.6% 102.6% 98.9% 45,440 44,940 99.1% 40,000 30,795 30,529 105.6% 11,020 10,440 0 H&B Pets Paper products Hou
Slide 8: Net Sales by Business Category (YoY)
Q2 FY03/2026 results ■ Net Sales by Business Category (YoY) (Millions of JPY) 280,000 260,578 256,184 240,000 Q2 FY03/2025 Q2 FY03/2026 200,000 101.7% 160,000 120,000 98.6% 80,000 71,222 70,250 100.1% 114.9% 106.7% 58,876 55,109 55,171 51,255 38,136 40,687 90.4% 40,000 19,614 17,734 0 Drugstores DIY
Slide 9: Q2 FY03/2026 Factors: Ordinary income
Q2 FY03/2026 results ■ Q2 FY03/2026 Factors Ordinary income: Shortfall of interim target Ordinary income: JPY7.549 billion YoY: ▲JPY1.02 billion 88.1% Gross profit : JPY49.412 billion YoY: +JPY771 million 101.6% Gross margin: 9.82% YoY ▲ 0.08 points ・ Increase in center fee and rebates SG&A expenses
Slide 10: FY2026 full-year forecast
Q2 FY03/2026 results ■ FY2026 full-year forecast Improvement through measures in H2 FY03/2026, but profit targets were revised downward due to shortfall in H1. FY03/2025 FY03/2026 (Millions of JPY) Results Initial plan Full-year forecast YoY change Vs. initial plan Net sales 986,212 1,000,000 1,006,
Slide 11: H2 FY03/2026 measures
Q2 FY03/2026 results ■ H2 FY03/2026 measures The challenging environment persists, but implement measures to achieve the revised plan. Improve gross profit ・ Specific measures to expand sales (focus on expanding in-store share) ・ Tackle issues in each category and cultivate growth products ・ Measure
Slide 12: Shareholder Returns
Q2 FY03/2026 results ■ Shareholder Returns Dividend policy: Aim for stable dividends and dividend increases while keeping in mind the dividend payout ratio of 30% FY03/2025: Interim JPY51, Term end JPY51, Total JPY102 (YoY +JPY9.5) 10th consecutive year of dividend increases FY03/2026 forecast: Inte
Slide 13: Consolidated Balance Sheets
Q2 FY03/2026 results ■ Consolidated Balance Sheets FY03/2025 Q2 FY03/2026 (Millions of JPY) (Millions of JPY) Current assets Current Current assets Current liabilities 158,961 246,666 liabilities 233,705 161,392 51.0% 49.2% 75.0% 75.2% Long-term Long-term 46,026 36,209 liabilities liabilities 11.6%
Slide 14: Topics
Topics 14
Slide 15: Establishment of new companies to improve supply chain efficiency
Topics ■ Establishment of new companies to improve supply chain efficiency Challenges in the general consumer goods distribution industry ✓ Due to inconsistent operation rules for product information, there is labor for manufacturers and wholesalers to process and register data for each business par
Slide 16: Integrated Report 2025 issued
Topics ■ Integrated Report 2025 issued English version will be published in December 2025 Please refer to the Integrated Report for details of our activities. Arata Integrated Report Search [Integrated Report Theme] AX (Arata Transformation) This report introduces the year-long effort aimed at “tran
Slide 17: Cautionary Statement and IR inquiry addresses
Cautionary Statement with Respect to Forward-Looking Statements ⚫ This material is solely for information purposes and should not be construed as a solicitation. This document (including the performance plan) has been prepared by us based on reliable information currently available, but it involves