Heiwado Q1 Net Profit Drops 45% on Cost Pressure; Holds Full-Year Growth Guidance

Heiwado Co., Ltd. (TSE: 8276) reported consolidated results for the first quarter of FY2/2027 (February 21–May 20, 2026; J-GAAP). Operating revenue rose 3.4% to ¥112,199 million, but operating profit fell 12.7% to ¥2,571 million, ordinary profit fell 16.8% to ¥2,774 million, and net profit fell 45.3% to ¥1,186 million. EPS was ¥23.99.

Sales up but margins squeezed

Heiwado operates supermarkets and general-merchandise stores (including its Al-Plaza and Heiwado banners) centered on Shiga Prefecture and the wider Kansai–Hokuriku region, plus stores in Hunan, China. Higher sales were offset by cost pressures, sharply reducing quarterly profit. The decline at the net level was far steeper than at the operating line, leaving net profit down nearly half year-on-year.

Balance sheet and dividend

Total assets stood at ¥314,044 million, net assets at ¥198,073 million, and the equity ratio at 62.4% — leaving the balance sheet conservatively capitalized. The FY2/2027 dividend forecast is ¥66.00 (¥33 interim + ¥33 year-end), unchanged from the prior year.

Full-year guidance unchanged

For FY2/2027, management maintained guidance for operating revenue of ¥478,000 million (+4.8%), operating profit of ¥14,300 million (+7.4%), ordinary profit of ¥15,200 million (+4.1%) and net profit of ¥9,800 million (+4.1%), with EPS of ¥198.16. Holding the outlook steady implies the company expects the first-quarter cost pressure to ease over the balance of the year.

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.