Mandarake H1 Operating Profit Jumps 41% as Retro-Anime Collectibles Demand Drives Record Half-Year Sales

Mandarake Inc. (TSE: 2652), Japan's leading specialist in second-hand manga, anime figures, vintage toys, and pop-culture collectibles, reported first-half results for the fiscal year ending September 2026 that showed a sharp improvement in profitability. On a non-consolidated basis under Japanese GAAP, net sales for the six months ended March 31, 2026 rose 8.8% year-on-year to ¥8,324 million, compared with ¥7,644 million in the prior-year period. The revenue growth partly reverses a period of more moderate gains — the prior-year H1 expanded only 5.7% — suggesting continued momentum in the pre-owned collectibles market driven by both domestic demand and growing inbound tourism interest in Japanese pop culture.

Operating profit expanded 40.9% to ¥1,317 million (H1 FY2025: ¥934 million), and ordinary profit rose 40.5% to ¥1,287 million (H1 FY2025: ¥916 million). The operating margin improvement was substantial: operating profit grew roughly five times faster than revenue, indicating significant operating leverage from the store network and procurement mix. Profit levels are recovering from the prior-year H1 when operating profit had declined 21.9% year-on-year.

Net profit surges 56% — sharpest H1 gain in several years

Interim net profit climbed 56.2% to ¥865 million, versus ¥553 million a year earlier. This represents the sharpest improvement at the bottom line in the company's recent results history. Interim EPS rose to ¥26.72 from ¥16.85 in the prior period, based on a weighted average share count of approximately 32.4 million shares (shares outstanding net of treasury: 32,395,530). No diluted EPS figure was disclosed as no dilutive securities are outstanding.

Balance sheet strengthens; equity ratio steady at 63%

Total assets at the end of H1 stood at ¥20,073 million, up from ¥18,907 million at the prior full-year end (September 2025), reflecting the accumulation of half-year profits and normal working capital movements. Net assets grew to ¥12,656 million from ¥11,822 million, with the equity ratio at 63.0% (versus 62.5% at the prior full-year end) — a well-capitalised level for a domestic retail operator. No buyback activity or share count changes were reported for the period; total issued shares remain at 36,180,000 including 3,784,470 treasury shares.

Full-year guidance maintained: ¥1.390 billion net profit, +23.9%

Management made no revision to the full-year FY2026/9 guidance issued previously. For the full year ending September 30, 2026, Mandarake guides for net sales of ¥15,837 million (+4.3% vs FY2025), operating profit of ¥2,087 million (+16.4%), ordinary profit of ¥2,055 million (+17.4%), and net profit of ¥1,390 million (+23.9%), equating to full-year EPS of ¥42.91. With H1 net profit of ¥865 million already representing 62% of the full-year target, the guidance implies a significantly softer second half — a seasonal pattern typical for the business, which tends to be stronger in the October–March period when consumer spending on hobbies and gift-season collectibles peaks.

Annual dividend held at ¥1.00; no interim dividend

Mandarake declared no interim dividend for the current H1 period (Q2 dividend: ¥0.00), consistent with its customary policy of paying only a year-end dividend. The full-year dividend is forecast at ¥1.00 per share (year-end only), unchanged from the ¥1.00 paid in FY2025. The company did not announce any subsequent events or material changes to accounting policies. The H1 short report is not subject to an independent auditor's review, as is standard for Japanese interim filings.

* Prior full-year end (September 30, 2025) figures used for balance-sheet comparison.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.