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Financial results presentation156AMaterial Group Inc.Information and Communications, Services and Others

Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026

In the third quarter of the fiscal year ending August 2026, revenue, gross profit and operating profit exceeded the same period of the previous year, driven by business expansion through M&A and improved productivity. Progress against the full-year operating profit forecast reached 89.6%. Although the PR platform business is behind schedule due to supply constraints, the company explained that there should be no issue in achieving its full-year target.

Worth reading
84Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
55.9
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFY ending August 2026, third quarter13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,662 million+41.5%
Operating profit¥1,031 million+55.9%
Ordinary income¥992 million+49.2%
Net income¥590 million +42.9%profit attributable to owners of the parent
Gross Profit Margin59.3 %
Operating profit margin15.5 %
Selling, general and administrative expenses¥2,917 million
Results for the three months of the current quarter
Net Sales
¥2,230 million
Gross margin
¥1,549 million
Operating profit
¥319 million
Full-year earnings forecast
Net Sales
¥8,964 million
Gross margin
¥6,297 million
Gross profit
¥5,527 million
Operating profit
¥1,150 million
Operating profit before amortization of goodwill
¥1,321 million
Ordinary income
¥1,037 million
Profit attributable to owners of the parent
¥612 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales74.3%
Gross margin72.3%
Gross profit71.4%
Operating profit89.6%
Operating profit before amortization of goodwill87.8%
Ordinary income95.7%
Profit attributable to owners of the parent96.4%
Segment gross profit
PR Consulting73.7%
Digital Marketing77.1%
PR Platform66.9%
Segment operating profit before goodwill amortization
PR Consulting80.0%
Digital Marketing79.0%
PR Platform88.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The consolidated results are progressing steadily. Progress against the full-year operating profit forecast is also on track, with no obstacles to achieving the full-year target. However, the PR platform business is behind plan due to supply constraints and other factors.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Organic growth of マテリアル since FY20Approximately +¥1,234 million
  • Increase in operating profit from M&A businesses after joining the groupApproximately +¥354 million
  • Operating profit at the time of M&A, after pro forma adjustmentsApproximately +¥400 million
  • Goodwill amortizationApproximately -¥175 million
  • Increase in corporate expenses and other factorsApproximately -¥503 million
New initiatives
  • The company resolved to voluntarily adopt IFRS and plans to disclose under IFRS starting with the annual securities report for the fiscal year ending August 2026.
  • Bridge launched an LLMO consulting service combining SEO, PR and its proprietary measurement tools.
  • A dedicated team was established to develop an AI-based business platform and promote the use of AI.
  • The company continues to actively consider M&A.
Key KPIsA metric the company considers important as a management benchmark.
  • Number of PR professionals204 People average during period
    Year on year against the same period last year+15.4%
  • Gross profit per PR professional¥1,395 thousand/month
    Year on year against the same period last year+1.9%
  • Number of digital marketing customers421 Companies period average
    Year on year against the same period last year+11.7%
  • Average digital marketing customer spend¥2,505 thousand/year
    Year on year against the same period last year+115.5%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
PR Consulting
Volume indicatorNumber of PR professionals: 204, up 15.4% year on year
Price indicatorGross profit per PR professional: ¥1,395 thousand/month, up 1.9% year on year
Digital Marketing
Volume indicatorNumber of customers: 421 companies, up 11.7% year on year
Price indicatorAverage customer spend: ¥2,505 thousand/year, up 115.5% year on year
Segment results
PR Consulting
Sales
¥4,743 million+17.8%
Gross margin
¥3,108 million+13.7%
Operating profit before amortization of goodwill
¥1,118 million+21.5%
Digital Marketing
Sales
¥1,117 million+115.8%
Gross margin
¥789 million+87.5%
Operating profit before amortization of goodwill
¥234 million+70.7%
PR Platform
Sales
¥908 million+320.0%
Gross margin
¥704 million+361.2%
Operating profit before amortization of goodwill
¥258 million+375.8%
Medium-term management plan targets
Period CoveredFiscal years ending August 2026 to August 2028
TargetConsolidated revenue CAGR of 25%, consolidated operating profit CAGR of 37%, and consolidated operating profit before goodwill amortization CAGR of 38%. The plan does not include new M&A.
M&A Investment¥6 billion to ¥10 billion under consideration over 3 years
Financial targets
ROE
22.4 % actual for the fiscal year ended August 2025
Market Size / Share
Advertising Market¥7.7 trillion
Fluid advertising marketApproximately ¥840 billion
Number of employees
The number of PR professionals was 204 (period average). 46 new graduates joined in April 2026, and 29 mid-career hires are scheduled to join by July 2026. The total number of employees across the group is not disclosed.
Annual Dividend
¥26.1 per share
Payout ratio
41.1 % forecast for the fiscal year ending August 2026
Total payout ratio81.2%
Acquisition of treasury shares
The forecast for the fiscal year ending August 2026 includes ¥240 million. The number of shares and period covered by the acquisition limit are not disclosed.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY ending August 2026, third quarter
Net Sales¥6,662 million (YoY +41.5%)
Operating profit¥1,031 million (YoY +55.9%)
Ordinary income¥992 million (YoY +49.2%)
Net income¥590 million (profit attributable to owners of the parent) (YoY +42.9%)
Gross Profit Margin59.3 %
Operating profit margin15.5 %
Selling, general and administrative expenses¥2,917 million
Results for the three months of the current quarterNet Sales ¥2,230 million / Gross margin ¥1,549 million / Operating profit ¥319 million
Full-year earnings forecastNet Sales ¥8,964 million / Gross margin ¥6,297 million / Gross profit ¥5,527 million / Operating profit ¥1,150 million / Operating profit before amortization of goodwill ¥1,321 million / Ordinary income ¥1,037 million / Profit attributable to owners of the parent ¥612 million
Progress against full-year forecastNet Sales 74.3% / Gross margin 72.3% / Gross profit 71.4% / Operating profit 89.6% / Operating profit before amortization of goodwill 87.8% / Ordinary income 95.7% / Profit attributable to owners of the parent 96.4% / Segment gross profit PR Consulting 73.7% / Digital Marketing 77.1% / PR Platform 66.9% / Segment operating profit before goodwill amortization PR Consulting 80.0% / Digital Marketing 79.0% / PR Platform 88.7%
Self-assessment against the planThe consolidated results are progressing steadily. Progress against the full-year operating profit forecast is also on track, with no obstacles to achieving the full-year target. However, the PR platform business is behind plan due to supply constraints and other factors.
Segment resultsPR Consulting Sales ¥4,743 million (YoY +17.8%) / Gross margin ¥3,108 million (YoY +13.7%) / Operating profit before amortization of goodwill ¥1,118 million (YoY +21.5%) / Digital Marketing Sales ¥1,117 million (YoY +115.8%) / Gross margin ¥789 million (YoY +87.5%) / Operating profit before amortization of goodwill ¥234 million (YoY +70.7%) / PR Platform Sales ¥908 million (YoY +320.0%) / Gross margin ¥704 million (YoY +361.2%) / Operating profit before amortization of goodwill ¥258 million (YoY +375.8%)
Breakdown of Factors Affecting the ChangeFactors Organic growth of マテリアル since FY20 / Amount Approximately +¥1,234 million, Factors Increase in operating profit from M&A businesses after joining the group / Amount Approximately +¥354 million, Factors Operating profit at the time of M&A, after pro forma adjustments / Amount Approximately +¥400 million, Factors Goodwill amortization / Amount Approximately -¥175 million, Factors Increase in corporate expenses and other factors / Amount Approximately -¥503 million
Key KPIsIndicator name Number of PR professionals / Value 204 People (average during period) / Year on year against the same period last year 15.4 People (average during period), Indicator name Gross profit per PR professional / Value ¥1,395 thousand/month / Year on year against the same period last year ¥1.9 thousand/month, Indicator name Number of digital marketing customers / Value 421 Companies (period average) / Year on year against the same period last year 11.7 Companies (period average), Indicator name Average digital marketing customer spend / Value ¥2,505 thousand/year / Year on year against the same period last year ¥115.5 thousand/year
Unit price and quantity metricsPR Consulting Volume indicator Number of PR professionals: 204, up 15.4% year on year / Price indicator Gross profit per PR professional: ¥1,395 thousand/month, up 1.9% year on year / Digital Marketing Volume indicator Number of customers: 421 companies, up 11.7% year on year / Price indicator Average customer spend: ¥2,505 thousand/year, up 115.5% year on year
Number of employeesThe number of PR professionals was 204 (period average). 46 new graduates joined in April 2026, and 29 mid-career hires are scheduled to join by July 2026. The total number of employees across the group is not disclosed.
Medium-term management plan targetsPeriod Covered Fiscal years ending August 2026 to August 2028 / Target Consolidated revenue CAGR of 25%, consolidated operating profit CAGR of 37%, and consolidated operating profit before goodwill amortization CAGR of 38%. The plan does not include new M&A. / M&A Investment ¥6 billion to ¥10 billion under consideration over 3 years
Financial targetsROE 22.4 % (actual for the fiscal year ended August 2025)
Annual Dividend¥26.1 per share
Payout ratio41.1 % (forecast for the fiscal year ending August 2026)
Acquisition of treasury sharesThe forecast for the fiscal year ending August 2026 includes ¥240 million. The number of shares and period covered by the acquisition limit are not disclosed.
Market Size / ShareAdvertising Market ¥7.7 trillion / Fluid advertising market Approximately ¥840 billion / Share Not disclosed
New initiativesThe company resolved to voluntarily adopt IFRS and plans to disclose under IFRS starting with the annual securities report for the fiscal year ending August 2026., Bridge launched an LLMO consulting service combining SEO, PR and its proprietary measurement tools., A dedicated team was established to develop an AI-based business platform and promote the use of AI., The company continues to actively consider M&A.
Items this document does not state (6)
Number of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited the impact of M&A and improved productivity as factors behind the increase in operating profit. By segment, it explained that growth was supported by steady growth in the PR consulting business, expansion of the digital marketing business through Bridge's participation, and expansion of the PR platform business through トレプロ's participation.

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Financial Results Presentation for the Third Quarter of the Fiscal Year Ending August 2026 | Material Group Inc. (156A) timely disclosure | Komori