Taiwan Sakura Reports 7% Net Profit Growth in First Half, EPS Reaches NT$3.26

Kitchen and bathroom appliance supplier Taiwan Sakura (9911-TW) announced its latest financial performance today, revealing that its after-tax net profit for Q2 2026 reached NT$304 million, down 25.52% quarter-on-quarter but up 6.54% year-on-year, with earnings per share (EPS) at NT$1.39. For the first half of 2026, after-tax net profit amounted to NT$713 million, representing a 6.98% year-on-year increase, with EPS reaching NT$3.26.

In Q2 2026, Taiwan Sakura recorded revenue of NT$2.586 billion, with a gross margin of 35.18%, down 0.48 percentage points from the previous quarter but up 0.14 percentage points year-on-year. After-tax net profit was NT$304 million, down 25.52% quarter-on-quarter and up 6.54% year-on-year, with EPS at NT$1.39.

For the first half of 2026, revenue totaled NT$5.497 billion, with a gross margin of 35.43%, up 0.63 percentage points year-on-year. After-tax net profit reached NT$713 million, up 6.98% year-on-year, with EPS at NT$3.26.

Taiwan Sakura noted that in the first half of 2026, it benefited from stable replacement demand from existing households, continued upgrades driven by AI KITCHEN, and ongoing expansion of its overall home business. With increasing sales proportion of high-end smart products and expanding operational scale, operating profit growth outpaced revenue growth, indicating continuous optimization of its business structure.

The kitchen and bathroom appliance segment grew steadily due to consistent replacement demand and enhanced distribution channels focused on intelligent and premium product sales, serving as the main driver of revenue growth in the first half. Leveraging long-established brand trust, extensive channel coverage, and after-sales service capabilities, Taiwan Sakura continues to capture demand for product renewal and home equipment upgrades. At the same time, the company deepened its AI KITCHEN strategy by enhancing user experience through environmental sensing, predictive analytics, and intelligent regulation, effectively converting replacement demand into upgrade momentum.

In the first half of 2026, sales of Taiwan Sakura's AI products increased 16% year-on-year, demonstrating growing market acceptance of smart kitchen applications and driving higher sales proportions of premium products, which contributed to a 5% year-on-year revenue increase in the kitchen and bathroom appliance business. In the water purification segment, filter cartridge sales rose 19% year-on-year, supported by strong equipment sales, maintaining positive growth momentum. Through equipment sales, recurring filter replacements, and after-sales services, the company further strengthened long-term engagement with existing household customers.

In the overall home solutions business, shipment volumes continued to rise as construction project deliveries progressed, resulting in a 7% year-on-year revenue increase in the first half. In the construction sector, the company leveraged its integrated kitchen planning, supply, and large-scale delivery capabilities to meet developers' comprehensive design needs. In the retail market, lifestyle showroom channels and advisory services provided consumers with more holistic product experiences. The contract penetration rate of AI KITCHEN exceeded 20% in both construction and retail markets, continuously driving demand for smart kitchens and product upgrades while enhancing overall kitchen product mix and customer value.

Newly signed contracts for integrated kitchens and full-home renovations in the first half of 2026 increased 16% year-on-year, reflecting robust demand from developer clients and strong project acquisition momentum. As construction contracts gradually translate into product shipments and revenue through subsequent engineering, delivery, and installation phases, the sustained growth in contract volume provides strong visibility for future revenue.

Taiwan Sakura stated that as consumer demand evolves from selecting individual products to seeking comprehensive home space planning and services, the company is deepening its 'HOME in O.N.E' strategy by integrating resources across kitchen and bathroom appliances, integrated kitchens, and full-home renovation to offer one-stop home solutions covering products, design, construction, and after-sales service. Building on its established brand, distribution network, and customer base, Taiwan Sakura is transforming from a single-product supplier into a creator of better living experiences. Its service scope per household has expanded from individual devices to complete spaces and life-stage-specific home needs, with the potential for per-customer value to increase tenfold or more. This shift also strengthens long-term customer relationships and enhances lifetime value.

Looking ahead to the second half, the kitchen and bathroom appliance business is expected to benefit from stable replacement demand and home equipment upgrades, with accelerated adoption of AI Kitchen smart products driving higher premium product sales and further optimizing the product mix. In the overall home solutions business, ongoing construction projects entering delivery and installation phases will sustain shipment momentum. In the retail market, lifestyle showrooms and advisory services will expand customer reach and service offerings. With core businesses performing solidly and growth-oriented segments contributing increasingly, the company expects full-year operations to maintain positive growth.