Profit rebuilt on Turkey and lower depreciation
DyDo Group Holdings, Inc. (TSE: 2590) published consolidated results for the first half of FY1/2027 — the six months from January 21 to July 20, 2026 — on August 27, 2026 under Japanese GAAP. Revenue rose 2.0% to ¥120,057 million, but the profit lines moved far more: operating profit reached ¥6,744 million against ¥1,381 million a year earlier, ordinary profit ¥4,331 million against ¥69 million, and net profit attributable to shareholders ¥2,800 million against a ¥1,361 million loss. Earnings per share were ¥88.34 against a loss of ¥43.05.
Two things did most of the work. Domestic beverages carry a much lower depreciation charge after the impairment losses booked in FY1/2026, and the overseas beverage business — principally Turkey — grew revenue by a quarter. The group applies IAS 29 hyperinflation accounting to its Turkish subsidiary, and that adjustment cuts both ways: it added ¥833 million to first-half revenue but subtracted ¥439 million from operating profit and ¥2,917 million from ordinary profit, the latter largely through a loss on the net monetary position booked in non-operating expenses.
Domestic vending shrinks but turns a profit
Domestic Beverage revenue fell 5.5% to ¥67,618 million, yet the segment swung to a ¥2,114 million profit from a ¥2,031 million loss. Sales per machine at directly operated DyDo vending machines improved as the company deliberately raised prices at unprofitable locations, but the number of machines in operation fell and volumes with it. On the cost side, lower depreciation, the continued refinement of the company's "Smart Operation" servicing model and restrained sales commissions did the rest. The supplement mail-order channel grew revenue on repeat subscriptions but earned less after a deliberate increase in advertising.
Turkey and Poland lift overseas beverages 25%
Overseas Beverage revenue rose 25.3% to ¥36,029 million and profit 68.1% to ¥5,228 million. In Turkey, where high inflation and a weak lira persist, the group pushed carbonated drinks as its priority category alongside strategic price revisions and flexible promotion, lifting both volume and value; raw-material, logistics and labour costs rose, but the revenue effect, a better product mix and higher production efficiency outweighed them. In Poland, Wosana saw mineral-water volumes dip as the country's deposit-return scheme came fully into force in January 2026, but large-format juice, contract manufacturing and translation effects still produced growth, and cheaper orange juice lifted profit.
The three smaller segments
Pharmaceutical-related revenue fell 6.4% to ¥6,540 million and profit 42.2% to ¥267 million as orders for pouch-packed quasi-drugs slowed after several years of market growth. Food revenue fell 8.5% to ¥9,517 million and profit 93.2% to ¥35 million, with lower production volumes cutting efficiency despite limited-edition products aimed at value-conscious shoppers. The Rare Disease Drugs business, which sells the Lambert-Eaton myasthenic syndrome treatment Firdapse launched in January 2025, grew revenue 79.8% to ¥473 million and narrowed its loss to ¥80 million from ¥184 million.
Balance sheet and raised guidance
Total assets rose 2.2% to ¥166,402 million from ¥162,812 million at the January 20, 2026 year-end, net assets 7.5% to ¥69,769 million, and the equity ratio improved to 41.5% from 39.5%.
DyDo raised its full-year FY1/2027 profit guidance. Operating profit is now seen at ¥12,300 million against the ¥10,500 million published previously (+17.1%), ordinary profit at ¥9,400 million from ¥8,400 million (+11.9%) and net profit at ¥6,000 million from ¥5,000 million (+20.0%), for earnings per share of ¥189.25. Revenue was trimmed 0.2% to ¥246,300 million. Measured against FY1/2026 — when impairment losses produced a ¥30,322 million net loss — that is a 195.5% rise in operating profit. The hyperinflation adjustment is expected to add ¥1.6 billion to full-year revenue while cutting ¥1.1 billion from operating profit, ¥3.8 billion from ordinary profit and ¥3.5 billion from net profit. The annual dividend forecast is unchanged at ¥30.00.
| Metric | H1 FY1/2027 | H1 FY1/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 120,057 | 117,701 | +2.0% |
| Operating profit (¥ million) | 6,744 | 1,381 | +388.2% |
| Ordinary profit (¥ million) | 4,331 | 69 | n.m. |
| Net profit attrib. to owners of parent (¥ million) | 2,800 | -1,361 | loss to profit |
| Comprehensive income (¥ million) | 5,340 | -2,142 | loss to profit |
| EPS (¥) | 88.34 | -43.05 | loss to profit |
| Domestic Beverage — revenue (¥ million) | 67,618 | 71,523 | -5.5% |
| Domestic Beverage — segment profit (¥ million) | 2,114 | -2,031 | loss to profit |
| Overseas Beverage — revenue (¥ million) | 36,029 | 28,756 | +25.3% |
| Overseas Beverage — segment profit (¥ million) | 5,228 | 3,111 | +68.1% |
| Pharmaceutical-related — revenue (¥ million) | 6,540 | 6,990 | -6.4% |
| Pharmaceutical-related — segment profit (¥ million) | 267 | 463 | -42.2% |
| Food — revenue (¥ million) | 9,517 | 10,395 | -8.5% |
| Food — segment profit (¥ million) | 35 | 530 | -93.2% |
| Rare Disease Drugs — revenue (¥ million) | 473 | 263 | +79.8% |
| Rare Disease Drugs — segment profit (¥ million) | -80 | -184 | loss narrowed |
| Total assets (¥ million) | 166,402 | 162,812 | +2.2% |
| Net assets (¥ million) | 69,769 | 64,895 | +7.5% |
| Equity ratio | 41.5% | 39.5% | +2.0 pt |
| FY1/2027 guidance — revenue (¥ million) | 246,300 | 241,236 | +2.1% |
| FY1/2027 guidance — operating profit (¥ million) | 12,300 | 4,163 | +195.5% |
| FY1/2027 guidance — ordinary profit (¥ million) | 9,400 | 1,467 | +540.7% |
| FY1/2027 guidance — net profit (¥ million) | 6,000 | -30,322 | loss to profit |
| FY1/2027 guidance — EPS (¥) | 189.25 | -957.83 | loss to profit |
| Annual dividend per share (¥) | 30.00 | 30.00 | unchanged |
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.