Glico H1 Operating Profit Jumps 43% to ¥4.65 Billion on China-Led Overseas Surge; Cuts Full-Year Profit Guidance

Ezaki Glico Co., Ltd. (TSE: 2206), the Osaka-based confectionery and food group behind Pocky, Pretz and the Bokujo Shibori ice-cream line, reported consolidated interim results for the six months to June 30, 2026 under Japanese GAAP. Revenue rose 9.7% to ¥180,369 million, operating profit climbed 42.8% to ¥4,654 million, recurring profit advanced 31.1% to ¥7,220 million on foreign-exchange gains, and net profit attributable to owners of the parent gained 32.8% to ¥4,973 million. Basic earnings per share were ¥79.32, up from ¥58.82. Comprehensive income swung to a ¥8,903 million gain from a ¥3,062 million loss a year earlier.

Overseas does the heavy lifting

The overseas business supplied essentially all of the growth. Overseas revenue surged 32.3% to ¥54,063 million and segment profit jumped 66.1% to ¥7,577 million, lifting the division to about 30% of group sales from 25% a year earlier. China led the way: local-currency sales rose 39.1% to CNY 1,439 million and operating profit 82.0% to CNY 300 million. The United States added a modest 1.1% revenue gain to USD 46 million with operating profit up 9.4% to USD 10 million, while ASEAN sales slipped 4.7% to USD 61 million and remained marginally loss-making.

Domestic segments stay under pressure

At home the picture was flatter. The Dairy business grew revenue 4.9% to ¥32,178 million on Bokujo Shibori and Seventeen Ice, but heavier promotion and advertising spending widened its seasonal operating loss by ¥419 million to ¥4,168 million. Nutritional Confectionery revenue was near flat at ¥29,924 million as Pretz and Caplico offset weakness in Kobe Roast Chocolate, yet segment profit halved — down 51.2% to ¥968 million — on a higher cost-of-sales ratio. Health & Foods revenue rose 2.1% to ¥21,187 million, with the Almond Koka drink offsetting declines in Curry Shokunin and Ice no Mi, and its seasonal operating loss narrowed by ¥238 million to ¥1,442 million on lower advertising. Food Ingredients revenue eased 1.6% to ¥6,273 million but profit rose 23.6% to ¥1,222 million, while Other Domestic revenue gained 2.1% to ¥36,741 million with profit down 43.6% to ¥143 million.

Input costs still biting

The consolidated cost-of-sales ratio rose 0.9 points to 62.9%, trimming the gross margin to 37.1%. Management's own profit bridge shows raw-material price inflation cost ¥4,415 million of operating profit year on year and higher general administrative expenses a further ¥1,832 million, against a ¥7,064 million benefit from higher volumes and ¥1,552 million from a lower freight-and-warehousing ratio. Stripping out the overseas contribution, domestic operating profit actually fell ¥1,619 million — confirming that the group's first-half improvement was earned abroad.

Revenue guidance raised, profit guidance cut

Glico revised the full-year FY12/2026 forecast it issued on February 13, 2026. Revenue guidance was raised to ¥390,000 million from ¥380,000 million (+7.9% year on year), entirely on the overseas segment, whose full-year sales target moves up to ¥115,000 million from ¥101,000 million. Operating profit guidance, however, was cut to ¥12,000 million from ¥14,000 million — a 14.3% reduction, though still +37.4% year on year — as a deeper expected dairy loss (now ¥5,500 million versus ¥4,000 million), a zeroed-out Health & Foods profit and a ¥1,900 million negative adjustment line outweigh a raised overseas profit target of ¥11,500 million. Recurring profit is guided at ¥14,000 million (+20.2%), net profit at ¥9,000 million (+78.7%) and EPS at ¥143.52.

Dividend held, buyback shrinks equity

The annual dividend plan is unchanged at ¥95.00 per share — a ¥45.00 interim payable from September 4, 2026, plus a ¥50.00 year-end — level with FY12/2025 and unrevised from the previous forecast. Total assets ended the half at ¥386,623 million, down ¥7,506 million from the December year-end, and net assets fell ¥7,677 million to ¥270,854 million after the company bought back 2,349,200 of its own shares, lifting treasury stock by ¥13,376 million to ¥26,979 million. The equity ratio eased 0.6 points to 69.9%.

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.