Halows Q1 Sales Rise 7.2% to ¥57.9 Billion but Profit Slips ~10% on Cost Pressure

Halows (TSE: 2742), a supermarket operator in Japan's Chugoku and Shikoku regions known for its 24-hour stores, posted first-quarter operating revenue of ¥57.9 billion (+7.2%) for FY2/2027, but operating profit fell 10.5% to ¥2.73 billion and net profit 7.2% to ¥1.98 billion as cost pressures squeezed margins. The company maintained full-year guidance and a raised ¥72 annual dividend.

Supermarket aisle with grocery shelves Halows Co., Ltd. · Tokyo Stock Exchange Standard

Halows Co., Ltd. (TSE: 2742) reported non-consolidated results for the first quarter of FY2/2027 (March 1–May 31, 2026; J-GAAP). Operating revenue rose 7.2% to ¥57,876 million, but operating profit fell 10.5% to ¥2,728 million, ordinary profit fell 10.2% to ¥2,747 million, and net profit fell 7.2% to ¥1,977 million. EPS was ¥92.64.

Sales growth, squeezed margins

Top-line growth reflected steady demand at the chain's supermarkets across the Chugoku and Shikoku regions, where Halows is known for round-the-clock operations, but profit slipped as cost inflation in goods, labour and utilities outpaced the revenue gain.

Balance sheet and dividend

Total assets were ¥137,028 million, net assets ¥78,974 million, and the equity ratio 57.4%. The FY2/2027 dividend forecast was raised to ¥72.00 (¥36 interim + ¥36 year-end) from ¥70.00 a year earlier.

Full-year guidance maintained

Management kept its FY2/2027 guidance: operating revenue of ¥245,622 million (+8.8%), operating profit of ¥12,590 million (+0.9%), ordinary profit of ¥12,580 million (+0.1%) and net profit of ¥8,660 million (−3.6%), with EPS of ¥405.66.

Halows Co., Ltd. — Q1 FY2/2027 Key Financials (J-GAAP, non-consolidated)
MetricQ1 FY2/2027Q1 FY2/2026YoY
Operating revenue (¥ million)57,87653,996+7.2%
Operating profit (¥ million)2,7283,047-10.5%
Ordinary profit (¥ million)2,7473,059-10.2%
Net profit (¥ million)1,9772,131-7.2%
EPS (¥)92.6499.65-7.0%
Equity ratio57.4%57.0%+0.4pp
Annual dividend (¥)72.0070.00+2.9%
FY27 net profit guidance (¥ million)8,660-3.6%

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.