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Earnings presentation156AMaterial Group Inc.Information and Communications, Services and Others

Full-Year Financial Results Presentation for the Fiscal Year Ending August 2026

For the fiscal year ended August 2026, revenue, gross profit, operating profit and net income increased significantly from the previous fiscal year, partly due to business scale expansion through M&A. Operating profit and ordinary profit exceeded the full-year plan, while revenue and gross profit fell short of plan.

Worth reading
79Important
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Direction
Improvement
Direction inferred from the company’s description.
Scale
39.7
Operating profit year-on-year (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFull year ended August 202615 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,714 million+38.6%
Operating profit¥1,162 million+39.7%
Ordinary income¥1,114 million+47.8%
Net income¥656 million+40.1%
Gross Profit Margin58.6 %
Operating profit margin13.3 %
Selling, general and administrative expenses¥3,943 million
Results for the three months of the current quarterRevenue: ¥2,052 million; gross profit: ¥1,400 million; operating profit: ¥131 million (third quarter of the fiscal year ending August 2026)
Full-year earnings forecast
Net Sales
¥8,964 million
Gross margin
¥6,297 million
Gross profit
¥5,527 million
Operating profit
¥1,150 million
Ordinary income
¥1,037 million
Net income
¥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 Sales97.2%
Gross margin94.5%
Gross profit92.4%
Operating profit101.0%
Operating profit before amortization of goodwill101.2%
Ordinary income107.5%
Net income107.3%
PRC gross profit96.3%
PRC operating profit before goodwill amortization96.4%
DM revenue114.4%
DM gross profit104.3%
DM operating profit before goodwill amortization100.4%
PRP revenue81.7%
PRP gross profit84.2%
PRP operating profit before goodwill amortization102.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit came in above plan. Gross profit fell short of plan, with an achievement rate of 94.5%.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The chart shows the factors behind the increase in operating profit from FY20 to FY26: ¥1,131 million from organic growth in the マテリアル business, ¥400 million from the increase in operating profit after M&A participation by the acquired businesses, ¥388 million in operating profit at the time of M&A participation, ¥175 million in goodwill amortization expense, and ¥321 million from increases in head office expenses and other factors.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
AI-related expenses of ¥74 million for the fiscal year ending August 2027, and ¥50 million in advisory fees and other costs for M&A transactions under consideration. The first half is positioned as a preparation period for AI adoption, with productivity improvements expected from the second half.
New initiatives
  • Basic Agreement Regarding the Acquisition of 80% of the Shares of Vero Group
  • Launch of the マテリアル Smart Retainer Program
  • Launch of the AI service TSUKUYOMI
  • Establishment of the production label APPERZ
  • Development and company-wide rollout of MAIOS
  • Voluntary adoption of IFRS
Key KPIsA metric the company considers important as a management benchmark.
  • Number of PR professionals206 people
    Year on year against the same period last year+11.7%
  • Gross profit per PR professional¥1,341 thousand/month
    Year on year against the same period last year+2.1%
  • Number of digital marketing customers419 companies
    Year on year against the same period last year+6.0%
  • Average digital marketing customer spend¥2,551 thousand/year
    Year on year against the same period last year+71.8%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of PR professionals and gross profit per person; number of digital marketing customers and average revenue per customer
Segment results
PR Consulting
Sales
¥6,211 million+13.2%
Gross margin
¥4,064 million+9.6%
Operating profit before amortization of goodwill
¥1,347 million+11.5%
Digital Marketing
Sales
¥1,517 million+111.7%
Gross margin
¥1,068 million+82.0%
Operating profit before amortization of goodwill
¥297 million+51.8%
PR Platform
Sales
¥1,144 million+714.7%
Gross margin
¥886 million+611.5%
Operating profit before amortization of goodwill
¥299 million+1,068.6%
Medium-term management plan targets
Fiscal years ending August 2026 to August 2028. 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, and the company is considering M&A investments of ¥6 billion to ¥10 billion over 3 years.
Financial targets
Actual ROE: 28.8%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥50 million in advisory fees and other costs for M&A transactions included in non-operating expenses
Market Size / Share
Advertising market: ¥8.1 trillion; 流動 advertising market: approximately ¥890 billion
Number of employees
31 mid-career PR professionals joined the company, along with 46 new graduates in April 2026. The average number of PR professionals during the period was 206.
Annual Dividend
¥26.10 for the fiscal year ended August 2026; forecast of ¥26.40 for the fiscal year ending August 2027
Payout ratio
Consolidated payout ratio targeted at 33%. Actual payout ratio of 37.6% for the fiscal year ended August 2026; forecast of 34.1% for the fiscal year ending August 2027
Acquisition of treasury shares
To be considered based on the share price level and available funds. As a past result, the total payout ratio for the fiscal year ended August 2026 was 75.0%, including ¥240 million.
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFull year ended August 2026
Net Sales¥8,714 million (YoY +38.6%)
Operating profit¥1,162 million (YoY +39.7%)
Ordinary income¥1,114 million (YoY +47.8%)
Net income¥656 million (YoY +40.1%)
Gross Profit Margin58.6 %
Operating profit margin13.3 %
Selling, general and administrative expenses¥3,943 million
Results for the three months of the current quarterRevenue: ¥2,052 million; gross profit: ¥1,400 million; operating profit: ¥131 million (third quarter of the fiscal year ending August 2026)
Full-year earnings forecastNet Sales ¥8,964 million / Gross margin ¥6,297 million / Gross profit ¥5,527 million / Operating profit ¥1,150 million / Ordinary income ¥1,037 million / Net income ¥612 million
Progress against full-year forecastNet Sales 97.2% / Gross margin 94.5% / Gross profit 92.4% / Operating profit 101.0% / Operating profit before amortization of goodwill 101.2% / Ordinary income 107.5% / Net income 107.3% / PRC gross profit 96.3% / PRC operating profit before goodwill amortization 96.4% / DM revenue 114.4% / DM gross profit 104.3% / DM operating profit before goodwill amortization 100.4% / PRP revenue 81.7% / PRP gross profit 84.2% / PRP operating profit before goodwill amortization 102.5%
Self-assessment against the planOperating profit came in above plan. Gross profit fell short of plan, with an achievement rate of 94.5%.
Segment resultsPR Consulting Sales ¥6,211 million (YoY +13.2%) / Gross margin ¥4,064 million (YoY +9.6%) / Operating profit before amortization of goodwill ¥1,347 million (YoY +11.5%) / Digital Marketing Sales ¥1,517 million (YoY +111.7%) / Gross margin ¥1,068 million (YoY +82.0%) / Operating profit before amortization of goodwill ¥297 million (YoY +51.8%) / PR Platform Sales ¥1,144 million (YoY +714.7%) / Gross margin ¥886 million (YoY +611.5%) / Operating profit before amortization of goodwill ¥299 million (YoY +1,068.6%)
Breakdown of Factors Affecting the ChangeThe chart shows the factors behind the increase in operating profit from FY20 to FY26: ¥1,131 million from organic growth in the マテリアル business, ¥400 million from the increase in operating profit after M&A participation by the acquired businesses, ¥388 million in operating profit at the time of M&A participation, ¥175 million in goodwill amortization expense, and ¥321 million from increases in head office expenses and other factors.
Key KPIsIndicator name Number of PR professionals / Value 206 people / Year on year against the same period last year +11.7%, Indicator name Gross profit per PR professional / Value ¥1,341 thousand/month / Year on year against the same period last year +2.1%, Indicator name Number of digital marketing customers / Value 419 companies / Year on year against the same period last year +6.0%, Indicator name Average digital marketing customer spend / Value ¥2,551 thousand/year / Year on year against the same period last year +71.8%
Unit price and quantity metricsNumber of PR professionals and gross profit per person; number of digital marketing customers and average revenue per customer
Number of employees31 mid-career PR professionals joined the company, along with 46 new graduates in April 2026. The average number of PR professionals during the period was 206.
Assumptions Underlying the Business OutlookAI-related expenses of ¥74 million for the fiscal year ending August 2027, and ¥50 million in advisory fees and other costs for M&A transactions under consideration. The first half is positioned as a preparation period for AI adoption, with productivity improvements expected from the second half.
Risk amount incorporated into the outlook¥50 million in advisory fees and other costs for M&A transactions included in non-operating expenses
Medium-term management plan targetsFiscal years ending August 2026 to August 2028. 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, and the company is considering M&A investments of ¥6 billion to ¥10 billion over 3 years.
Financial targetsActual ROE: 28.8%
Annual Dividend¥26.10 for the fiscal year ended August 2026; forecast of ¥26.40 for the fiscal year ending August 2027
Payout ratioConsolidated payout ratio targeted at 33%. Actual payout ratio of 37.6% for the fiscal year ended August 2026; forecast of 34.1% for the fiscal year ending August 2027
Acquisition of treasury sharesTo be considered based on the share price level and available funds. As a past result, the total payout ratio for the fiscal year ended August 2026 was 75.0%, including ¥240 million.
Market Size / ShareAdvertising market: ¥8.1 trillion; 流動 advertising market: approximately ¥890 billion
New initiativesBasic Agreement Regarding the Acquisition of 80% of the Shares of Vero Group, Launch of the マテリアル Smart Retainer Program, Launch of the AI service TSUKUYOMI, Establishment of the production label APPERZ, Development and company-wide rollout of MAIOS, Voluntary adoption of IFRS
Items this document does not state (4)
Number of stores and locationsCapital 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.

In addition to steady growth in the PR consulting business, the businesses acquired through the participation of Bridge and トレプロ in M&A expanded the scale of the digital marketing and PR platform businesses. The increase in goodwill amortization expense was absorbed through improvements in the personnel expense ratio and other measures.

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