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Watahan Holdings H1 net profit tops forecast by 46.76% on negative goodwill gain

Thu, Oct 29, 2026 15:30 JST Watahan Holdings (3199.T) Retail 中文

Watahan Holdings (3199) posted first-half net profit of ¥1.09 billion, 46.76% above its forecast of ¥746 million, after booking a gain on negative goodwill tied to a new consolidated subsidiary, while operating profit fell 20.2% from a year earlier.

H1 net profit¥1.09 billion
Net profit vs. forecast+46.76%
H1 operating profit¥1.16 billion (down 20.2%)
FY net profit forecast (unchanged)¥2.3 billion

Sales for the April-September period rose 2.3% year on year to ¥66.99 billion. Operating profit fell 20.2% to ¥1.16 billion and ordinary profit dropped 22.7% to ¥1.27 billion. Net profit attributable to owners of the parent was down 3.6% from ¥1.14 billion a year earlier, with earnings per share of ¥58.53 versus ¥58.61. Against the forecast issued on May 11, 2026:

ItemForecast (A)Actual (B)Change
Sales¥69.33 billion¥66.99 billion-3.38%
Operating profit¥1.20 billion¥1.16 billion-3.26%
Ordinary profit¥1.24 billion¥1.27 billion+2.00%
Net profit¥746 million¥1.09 billion+46.76%

The company said the negative goodwill gain, booked as extraordinary income, was calculated provisionally because the allocation of acquisition cost had not been completed at the end of the period. Its scope of consolidation added one company, Toyo Kogyo Co. (東陽興業), during the half.

Retail segment sales fell 3.0% to ¥38.13 billion and segment profit dropped 19.5% to ¥767 million, which the company attributed to temporarily smaller sales floors during store renovations and weak sales of seasonal goods due to unseasonable weather.

Watahan kept its full-year forecast for the year ending March 2027 unchanged: sales of ¥140.0 billion, operating profit of ¥3.8 billion, ordinary profit of ¥4.0 billion and net profit of ¥2.3 billion, or ¥123.07 per share. It paid no interim dividend and maintained its year-end dividend forecast of ¥31, compared with ¥30 for the previous year.

The company plans to file its semiannual securities report on Nov. 12, 2026, and will provide its earnings explanation by video on its website instead of holding a briefing.


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