Japan Research Pack

The first stage of the FY16 full-year results reporting season has ended. The 109companies in the Russell/Nomura Large Cap Index (ex financials) that have releasedresults to date generated aggregate Q4 sales growth of 4.3% and recurring profitgrowth of 42.1%. Net profits rose more than 5-fold on a y-y basis. These samecompanies saw sales fall 2.5% and recurring profits rise only 1.9% in Q3. Not only didsales rise for the first time in six quarters, ie since FY15 Q2, but there was also a sharprise in profits.