Supplementary Explanatory Materials for the Second Quarter Financial Results for the Fiscal Year Ending February 2027 | Kitanotatsujin Corporation (2930) timely disclosure

Worth reading

79Important

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-30.7

Year-on-year change in operating profit (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending February 2027, second quarter9 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥7,086 million+35.1%

Operating profit¥350 million-30.7%

Ordinary income¥370 million-28.6%

Net income¥230 million-34.9%

Selling, general and administrative expenses¥4,684 million

Gross Profit Margin71.0%, down approximately 6.0 percentage points year on year

Operating profit margin4.9%, down approximately 4.6 percentage points year on year

Results for the three months of the current quarter

Net Sales

¥3,876 million+37.0%

Gross profit

¥2,708 million+26.2%

Selling, general and administrative expenses

¥2,255 million+25.3%

Operating profit

¥350 million+32.3%

NotesActual results for FY2027 2Q. On an underlying basis adjusted for shipment timing differences, revenue was ¥3,629 million and operating profit was ¥350 million.

Full-year earnings forecast

Net Sales

¥14,355 million

Operating profit

¥1,059 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue fell 2.5% short of the plan, while operating profit came in as planned. Operating profit exceeded the plan by 1.6%.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Increase in new and recurring revenue, among other items, from expanded acquisition of new customers
Revenue contribution from Color Contact Direct¥591 million
Year-on-year increase in customer acquisition costs¥811 million
Timing differences in the recognition of revenue and other items due to shipment delays¥286 million

New initiatives

Launch of the new HACKTICK brand
Use of generative AI and review of advertising testing methods
Revamp of product images and description pages for EC marketplaces and optimize advertising
Launch of TikTok Shop operations
Post-merger integration initiatives to improve sales and advertising efficiency following the acquisition of Color Contact Direct

Key KPIsA metric the company considers important as a management benchmark.

Number of new customers acquiredHighest level since FY2025, second only to FY2027 1Q
Overall in-house advertising CPOMaintained at a certain level
EC marketplace revenue¥504 million
Year on year against the same period last year+9.0%
Number of new products launched in FY20276 Products
Number of products offered by Color Contact Direct90 or more

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Number of new customers acquired
Overall in-house advertising CPOMaintained at a certain level
Average revenue per first purchaseBelow the earnings forecast

Segment results

Health and Beauty Care-related business
Net Sales¥7,086 million
BusinessKitanotatsujin Corporation (including Kitanokaitekikobo and other businesses)
1Q revenue
¥2,716 million
2Q revenue
¥3,385 million
BusinessSALONMOON
1Q revenue
¥211 million
2Q revenue
¥181 million
BusinessKarakon Direct
1Q revenue
¥281 million
2Q revenue
¥309 million

Medium-term management plan targets

Target fiscal yearFY2028

Net Sales23,500

Revenue unit¥ million

Operating profit3,100

Operating profit unit¥ million

Orders received and order backlog

¥286 million

DetailsOrder backlog at the end of FY2027 1Q

Gross profit

¥5,034 million+25.1%

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending February 2027, second quarter
Net Sales	¥7,086 million (YoY +35.1%)
Operating profit	¥350 million (YoY -30.7%)
Ordinary income	¥370 million (YoY -28.6%)
Net income	¥230 million (YoY -34.9%)
Gross profit	¥5,034 million (YoY +25.1%)
Gross Profit Margin	71.0%, down approximately 6.0 percentage points year on year
Operating profit margin	4.9%, down approximately 4.6 percentage points year on year
Selling, general and administrative expenses	¥4,684 million
Results for the three months of the current quarter	Net Sales ¥3,876 million (YoY +37.0%) / Gross profit ¥2,708 million (YoY +26.2%) / Selling, general and administrative expenses ¥2,255 million (YoY +25.3%) / Operating profit ¥350 million (YoY +32.3%) / Notes Actual results for FY2027 2Q. On an underlying basis adjusted for shipment timing differences, revenue was ¥3,629 million and operating profit was ¥350 million.
Full-year earnings forecast	Net Sales ¥14,355 million / Operating profit ¥1,059 million
Self-assessment against the plan	Revenue fell 2.5% short of the plan, while operating profit came in as planned. Operating profit exceeded the plan by 1.6%.
Segment results	Segment Health and Beauty Care-related business / Net Sales ¥7,086 million / Profit Not disclosed, Business Kitanotatsujin Corporation (including Kitanokaitekikobo and other businesses) / 1Q revenue ¥2,716 million / 2Q revenue ¥3,385 million, Business SALONMOON / 1Q revenue ¥211 million / 2Q revenue ¥181 million, Business Karakon Direct / 1Q revenue ¥281 million / 2Q revenue ¥309 million
Breakdown of Factors Affecting the Change	Factors Increase in new and recurring revenue, among other items, from expanded acquisition of new customers / Amount Not disclosed, Factors Revenue contribution from Color Contact Direct / Amount ¥591 million, Factors Year-on-year increase in customer acquisition costs / Amount ¥811 million, Factors Timing differences in the recognition of revenue and other items due to shipment delays / Amount ¥286 million
Key KPIs	Indicator name Number of new customers acquired / Value Highest level since FY2025, second only to FY2027 1Q / Year on year against the same period last year Not disclosed, Indicator name Overall in-house advertising CPO / Value Maintained at a certain level / Year on year against the same period last year Not disclosed, Indicator name EC marketplace revenue / Value ¥504 million / Year on year against the same period last year ¥9 million, Indicator name Number of new products launched in FY2027 / Value 6 Products / Year on year against the same period last year Not disclosed, Indicator name Number of products offered by Color Contact Direct / Value 90 or more / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name Number of new customers acquired / Value Not disclosed, Indicator name Overall in-house advertising CPO / Value Maintained at a certain level, Indicator name Average revenue per first purchase / Value Below the earnings forecast
Medium-term management plan targets	Target fiscal year FY2028 / Net Sales 23,500 / Revenue unit ¥ million / Operating profit 3,100 / Operating profit unit ¥ million
Orders received and order backlog	Amount ¥286 million / Details Order backlog at the end of FY2027 1Q
New initiatives	Launch of the new HACKTICK brand, Use of generative AI and review of advertising testing methods, Revamp of product images and description pages for EC marketplaces and optimize advertising, Launch of TikTok Shop operations, Post-merger integration initiatives to improve sales and advertising efficiency following the acquisition of Color Contact Direct

Items this document does not state (12)

Progress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey 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.

New and recurring revenue, among other items, increased on strong acquisition of new customers, while revenue from Color Contact Direct also contributed. However, operating profit declined because customer acquisition costs were incurred upfront to expand new customer acquisition.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.