Pickles Holdings Co., Ltd. (TSE: 2935), a leading Japanese maker of pickled vegetables, kimchi and tsukemono whose brands include the popular "Gohan ga Susumu kun" line, opened its fiscal year ending February 2027 with a profitable, margin-driven start. For the first quarter (March 1–May 31, 2026) under Japanese GAAP, consolidated revenue slipped 4.9% year-on-year to ¥10,498 million, yet operating profit rose 12.5% to ¥696 million, ordinary profit climbed 12.2% to ¥711 million and net profit attributable to owners advanced 11.6% to ¥473 million. EPS was ¥37.82, up from ¥34.14 a year earlier.
Margins lift profit even as sales dip
Although top-line revenue eased on softer volumes, every profit line moved higher thanks to better cost and margin management across the group's pickled-vegetable, kimchi and tsukemono ranges. The result underscores a disciplined start to the year, with profitability improving even without sales growth. The balance sheet remains financially solid, with total assets of ¥30,929 million, net assets of ¥20,301 million and an equity ratio of 64.5%.
Dividend held at ¥29
Pickles Holdings left its FY2/2027 dividend forecast unchanged at ¥29.00 per share, comprising a ¥15.00 interim payout and a ¥14.00 year-end payout. The steady distribution signals management's confidence in the group's cash generation despite the planned full-year profit step-down.
Full-year outlook still points lower
Despite the strong first quarter, the company kept its full-year FY2/2027 guidance unchanged and still expects profit to decline over the year on cost inflation and continued investment. It guides for revenue of ¥41,000 million (+0.2%), operating profit of ¥1,820 million (−12.7%), ordinary profit of ¥1,860 million (−13.4%) and net profit of ¥1,231 million (−11.0%), for EPS of ¥98.33. The first-half outlook calls for revenue of ¥21,800 million (−2.3%), operating profit of ¥1,300 million (−17.2%) and net profit of ¥878 million (−20.4%) — a clear contrast to the solid first-quarter print.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 10.50 | 11.04 | −4.9% |
| Operating profit (¥bn) | 0.696 | 0.619 | +12.5% |
| Ordinary profit (¥bn) | 0.711 | 0.634 | +12.2% |
| Net profit attrib. (¥bn) | 0.473 | 0.424 | +11.6% |
| EPS (¥) | 37.82 | 34.14 | +10.8% |
| Equity ratio | 64.5% | 65.1% | −0.6pp |
| FY2/27 OP guidance (¥bn) | 1.82 | 2.08 | −12.7% |
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.