Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
229
Millions of yen (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFiscal year ending January 2027, second quarter (interim period)10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥90,224 million-2.5%
Operating profit¥3,070 million+8.1%
Ordinary income¥2,987 million+6.5%
Net income¥2,019 million-1.2%
Operating profit margin3.4 %
Full-year earnings forecast
Net Sales
¥174,000 million
Operating profit
¥4,000 million
Ordinary income
¥3,900 million
Profit attributable to owners of the parent
¥2,470 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Education Market Sales143
Store and Online Sales-441
Library Support134
Publication134
Other273
Adjustments-110
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Only a qualitative explanation was provided, stating that the Company expects higher personnel expenses due to increases in the minimum wage and other factors, soaring material prices, and investments and initial expenses associated with the medium-term management plan initiatives.New initiatives
- Opening of Tsuruga Chienamiki University
- Development of EXPO 2027 official stores
- Establishment of the “Child Medical Team,” a multidisciplinary collaboration structure in the childcare sector
- Agreement with Kortext to become its exclusive distributor in Japan
- Expansion of the exclusive distributor agreement with De Gruyter Brill
- Launch of an unlimited e-book subscription service
- AI voice concierge demonstration project with Ricoh Japan and others
- Industry-academia collaboration agreement with Kobe Shoin University for IP talent development
Key KPIsA metric the company considers important as a management benchmark.
- Number of libraries operated under contract1,880 Cinemas
- Total number of stores in the Group117 Location
- Number of Surugaya FC stores13 LocationYear on year against the same period last year3 new stores
- Number of new titles published123 itemsYear on year against the same period last year+4.2%
Segment results
Educational Market Sales business
Net Sales
¥26,345 million-1.1%
Operating profit
¥2,182 million+11.7%
Retail and Online Sales business
Net Sales
¥35,151 million-9.5%
Operating profit
¥593 million-42.6%
Library Support business
Net Sales
¥20,540 million+5.3%
Operating profit
¥1,526 million+10.4%
Publishing Business
Net Sales
¥2,000 million+8.1%
Operating profit
¥63 million
Other businesses
Net Sales
¥6,186 million+9.2%
Operating profit
¥595 million+84.7%
Medium-term management plan targets
Target of achieving a 30% dividend payout ratio by the fiscal year ending January 2029. Other numerical targets are Not disclosed.Market Size / Share
The Company has a top-tier share of the business outsourcing market for public and university libraries (numerical share is Not disclosed).Number of stores and locations
Number at period-end117 stores across the Group, 13 Surugaya FC stores, 9 EHONS stores, and 8 EXPO 2027 official stores nationwide
Number of store openings and closures during the period3 new Surugaya FC stores, and an increase of 29 in the number of libraries operated under contract from the beginning of the fiscal year
Annual Dividend
End of period6 Yen/share
Payout ratio
Target of 30% by the fiscal year ending January 2029| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Fiscal year ending January 2027, second quarter (interim period) |
| Net Sales | ¥90,224 million (YoY -2.5%) |
| Operating profit | ¥3,070 million (YoY +8.1%) |
| Ordinary income | ¥2,987 million (YoY +6.5%) |
| Net income | ¥2,019 million (YoY -1.2%) |
| Operating profit margin | 3.4 % |
| Full-year earnings forecast | Net Sales ¥174,000 million / Operating profit ¥4,000 million / Ordinary income ¥3,900 million / Profit attributable to owners of the parent ¥2,470 million |
| Segment results | Educational Market Sales business Net Sales ¥26,345 million (YoY -1.1%) / Operating profit ¥2,182 million (YoY +11.7%) / Retail and Online Sales business Net Sales ¥35,151 million (YoY -9.5%) / Operating profit ¥593 million (YoY -42.6%) / Library Support business Net Sales ¥20,540 million (YoY +5.3%) / Operating profit ¥1,526 million (YoY +10.4%) / Publishing Business Net Sales ¥2,000 million (YoY +8.1%) / Operating profit ¥63 million / Other businesses Net Sales ¥6,186 million (YoY +9.2%) / Operating profit ¥595 million (YoY +84.7%) |
| Breakdown of Factors Affecting the Change | Education Market Sales 143 / Store and Online Sales -441 / Library Support 134 / Publication 134 / Other 273 / Adjustments -110 |
| Key KPIs | Indicator name Number of libraries operated under contract / Value 1,880 Cinemas / Year on year against the same period last year Not disclosed, Indicator name Total number of stores in the Group / Value 117 Location / Year on year against the same period last year Not disclosed, Indicator name Number of Surugaya FC stores / Value 13 Location / Year on year against the same period last year 3 new stores, Indicator name Number of new titles published / Value 123 items / Year on year against the same period last year 4.2 items |
| Number of stores and locations | Number at period-end 117 stores across the Group, 13 Surugaya FC stores, 9 EHONS stores, and 8 EXPO 2027 official stores nationwide / Number of store openings and closures during the period 3 new Surugaya FC stores, and an increase of 29 in the number of libraries operated under contract from the beginning of the fiscal year |
| Assumptions Underlying the Business Outlook | Only a qualitative explanation was provided, stating that the Company expects higher personnel expenses due to increases in the minimum wage and other factors, soaring material prices, and investments and initial expenses associated with the medium-term management plan initiatives. |
| Medium-term management plan targets | Target of achieving a 30% dividend payout ratio by the fiscal year ending January 2029. Other numerical targets are Not disclosed. |
| Annual Dividend | End of period 6 Yen/share / Interim Not disclosed |
| Payout ratio | Target of 30% by the fiscal year ending January 2029 |
| Market Size / Share | The Company has a top-tier share of the business outsourcing market for public and university libraries (numerical share is Not disclosed). |
| New initiatives | Opening of Tsuruga Chienamiki University, Development of EXPO 2027 official stores, Establishment of the “Child Medical Team,” a multidisciplinary collaboration structure in the childcare sector, Agreement with Kortext to become its exclusive distributor in Japan, Expansion of the exclusive distributor agreement with De Gruyter Brill, Launch of an unlimited e-book subscription service, AI voice concierge demonstration project with Ricoh Japan and others, Industry-academia collaboration agreement with Kobe Shoin University for IP talent development |
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital 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 store and online sales business posted declines in revenue and profit due to the negative impact of the prior period's special demand from operations of the Expo 2025 Osaka-Kansai official stores and other activities. In contrast, profit increased due to improved profitability in design and construction projects in the education market sales business, an increase in the number of libraries operated under contract in the library support business, and strong performance in other businesses. From the third quarter onward, the Company expects higher personnel expenses due to increases in the minimum wage and other factors, soaring material prices, and investments and initial expenses associated with implementing the medium-term management plan.
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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.