Price revisions lift operating profit
Advan Group Co., Ltd. (TSE: 7463), the Tokyo-based supplier of imported tiles, stone and other building materials, reported consolidated results for the first half of FY3/2027, the six months from April 1 to September 30, 2026, on October 9, 2026 under Japanese GAAP. Net sales rose 7.8% to ¥8,929 million and operating profit 81.4% to ¥1,946 million, but ordinary profit fell 77.1% to ¥773 million and net profit attributable to owners of the parent 55.6% to ¥893 million, or ¥26.60 per share against ¥58.04.
Against a backdrop of persistent inflation, weak consumer spending and further Bank of Japan rate increases, the group raised prices, standardized and streamlined work across its departments and tightened inventory control. Gross profit climbed 20.4% to ¥3,875 million, while selling, general and administrative expenses fell 10.0% to ¥1,928 million.
Forex contracts swing the bottom line
Below the operating line the picture reversed. The unrealized gain on the group's forward exchange contracts shrank to ¥18,561 million at the end of September from ¥21,032 million at the end of March, so the company booked a ¥2,470 million valuation loss in non-operating expenses; a year earlier the same contracts had produced a ¥1,600 million valuation gain. Pre-tax profit was ¥1,399 million against ¥3,389 million. Because foreign-exchange and contract valuation gains and losses are hard to predict, the company does not publish guidance for ordinary or net profit.
Segments
The building materials segment grew sales 7.8% to ¥8,846 million and segment profit 56.3% to ¥1,937 million. The real-estate leasing segment, including rent charged within the group, grew sales 2.5% to ¥1,315 million and profit 13.5% to ¥707 million.
Balance sheet and outlook
Total assets fell 1.1% to ¥83,275 million from the end of March and net assets 2.0% to ¥59,064 million after ¥2,680 million of dividend payments, leaving the equity ratio at 70.9%. Operating cash flow was ¥1,022 million after ¥2,896 million of income tax payments, and cash and cash equivalents rose ¥1,687 million to ¥6,353 million. The interim dividend is unchanged at ¥20; the company expects ¥40 for the full year against ¥100 in FY3/2026, which included a ¥60 special dividend. It kept its full-year forecast of net sales of ¥18,500 million (+8.6%) and operating profit of ¥2,800 million (+25.4%).
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 8,929 | 8,283 | +7.8% |
| Gross profit (¥ million) | 3,875 | 3,217 | +20.4% |
| SG&A expenses (¥ million) | 1,928 | 2,144 | −10.0% |
| Operating profit (¥ million) | 1,946 | 1,073 | +81.4% |
| Ordinary profit (¥ million) | 773 | 3,384 | −77.1% |
| Pre-tax profit (¥ million) | 1,399 | 3,389 | −58.7% |
| Net profit attrib. to owners of parent (¥ million) | 893 | 2,009 | −55.6% |
| EPS (¥) | 26.60 | 58.04 | −54.2% |
| Building materials — revenue (¥ million) | 8,846 | 8,210 | +7.8% |
| Building materials — segment profit (¥ million) | 1,937 | 1,240 | +56.3% |
| Real-estate leasing — revenue (¥ million) | 1,315 | 1,283 | +2.5% |
| Real-estate leasing — segment profit (¥ million) | 707 | 622 | +13.5% |
| Total assets (¥ million) | 83,275 | 84,243 | −1.1% |
| Net assets (¥ million) | 59,064 | 60,271 | −2.0% |
| Equity ratio | 70.9% | 71.5% | −0.6 pt |
| FY3/2027 guidance — revenue (¥ million) | 18,500 | — | +8.6% |
| FY3/2027 guidance — operating profit (¥ million) | 2,800 | — | +25.4% |
| Annual dividend per share (¥) | 40.00 | 100.00 | −60.0% |
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.