Baskin-Robbins Japan H1 Revenue Jumps 17% to Record ¥18.55 Billion, but Operating Profit Falls 16% on Cost Surge

B-R 31 Ice Cream Co., Ltd. (TSE: 2268), which runs the Baskin-Robbins "31" ice cream chain across Japan, reported consolidated results for the first half of FY12/2026 (January–June 2026) under Japanese GAAP on July 23. Revenue rose 17.3% year on year to a record ¥18,551 million, while gross profit gained 9.4% to ¥8,888 million. Operating profit fell 16.0% to ¥1,424 million, ordinary profit slipped 9.3% to ¥1,534 million, and net profit attributable to owners of the parent declined 9.8% to ¥984 million — higher sales but lower profits, as record cost-of-sales inflation outpaced the top line.

Record sales, squeezed margins

Domestic system-wide retail sales reached a record ¥34,998 million, and retail sales per store hit an all-time high of ¥32 million, with same-store sales now positive for 21 consecutive quarters. Cost of sales, however, jumped 25.6% to ¥9,663 million on soaring ingredient prices and the weak yen, cutting the gross margin by 3.5 percentage points (a roughly ¥640 million hit). Selling, general and administrative expenses rose ¥1,034 million to ¥7,463 million as the company spent aggressively on new-flavour promotion, digital advertising, mobile ordering and network expansion, alongside higher logistics costs from increased shipments.

Brand refresh and character collaborations

The company renewed its brand logo on April 1, 2026 and is rolling out two new store designs, "STUDIO" and "LOUNGE". Collaboration products tied to Super Mario Galaxy and Dragon Quest sold well across a broad customer base, and the new "31 Patisserie" ice-cream-cake category — including the newly launched "31 The Cheesecake" — is off to a strong start, while the popular "Yokubari Fes" campaign returned. Membership of the 31Club app has passed 11.8 million, with members accounting for 45.4% of total sales.

Store network keeps growing

Domestic stores numbered 1,088 at end-June, a net increase of 39 from a year earlier (1,102 including satellite formats). Adding 437 domestic cup-sales points and 54 directly run overseas stores in Taiwan and Hawaii, total sales locations reached 1,593, up 87 year on year, helped by openings in university and company cafeterias, leisure sites, service areas, airports and stations.

Balance sheet and outlook

Total assets stood at ¥31,658 million, down ¥145 million from end-December, and net assets rose ¥369 million to ¥15,350 million. Cash ended the half at ¥5,926 million after ¥1,089 million of property investment — including capacity expansion at the Fuji-Oyama plant — and ¥529 million of dividend payments; operating cash flow was ¥596 million. Management left its full-year forecasts, announced on February 9, 2026, unchanged, saying the first half is tracking in line with plan.

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.