Komori
Earnings presentation3205DAIDOH LIMITEDMaterials and Chemicals

Supplementary Materials to the Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

First-half revenue increased substantially due to the consolidation of Japan Blue, and operating profit returned to profitability for the first time in 21 periods. First-half net income was below forecast due to the timing of asset sales, but the full-year forecast was left unchanged.

Worth reading
70In focus
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
883
Millions of yen (year-on-year increase in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥18,847 million+41.8%
Operating profit¥185 million
Ordinary income¥283 million
Net income¥-93 million interim net income attributable to owners of the parent
Full-year earnings forecast
Net Sales
¥40,000 million
Adjusted operating profit before amortization of goodwill (EBITA)
¥2,055 million
Operating profit
¥1,500 million
Ordinary income
¥1,310 million
Profit attributable to owners of the parent
¥780 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
First-half revenue, operating profit and ordinary profit exceeded the forecast, while first-half net income fell short of the forecast
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Is the return to operating profitability temporary? The company explained that the consolidation of Japan Blue's full-year contribution is driving a shift in the earnings structure, although quarterly profit may fluctuate.
  2. Reason for acquiring 4strengX: to expand into the wellness sector and maximize customer lifetime value by combining it with the existing customer base
  3. Impact of 4strengX on results: adjusted EBITA of ¥300 million and goodwill amortization expense of ¥208 million are forecast for FY2026
  4. Future M&A: considering companies with high value added, high growth and high profitability that complement and strengthen existing capabilities
  5. Likelihood of achieving full-year operating profit of ¥1,500 million: ¥1,315 million will be required in the second half, but the company expects contributions from seasonality, growth in existing businesses and 4strengX
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Japan Blue+¥1,187 million
Dynacity+¥70 million
Brooks Brothers+¥42 million
Ponte Torto△¥188 million
New Yorker-¥34 million
New initiatives
  • 4strengX, the protein business, was made a consolidated subsidiary, with a contribution to consolidated results planned from the third quarter
  • The Japan Blue Jeans KOJIMA flagship store will reopen following renovations on 1 October 2026
  • Launch of the first collaboration collection between Brooks Brothers and NEEDLES
  • NEWYORKER entered into a partnership with Kashima Antlers and the Tokyo Sunrockers as their official suit supplier
Key KPIsA metric the company considers important as a management benchmark.
Overseas revenue ratio (FY2024)19.7％
Overseas sales ratio (FY2035 target)Above 50%
Number of countries and regions where Japan Blue is deployed26 countries and regions
Segment results
Japan BlueAdjusted EBITA, up ¥1,187 million year on year
DynacityAdjusted EBITA, up ¥70 million year on year (Shopping Center Division: up ¥125 million; Corporate Real Estate Division: down ¥57 million)
Brooks BrothersAdjusted EBITA, up ¥42 million year on year
Ponte TortoAdjusted EBITA, down ¥188 million year on year
New YorkerAdjusted EBITA, down ¥34 million year on year
Medium-term management plan targets
FY2026
Net Sales¥36 billion
Operating profit¥1.5 billion
ROE8.0％
Dividends¥12 (payout ratio: 30%)
FY2028
Net Sales¥65.0 billion
Operating profit¥4 billion
ROE20.0％
Share price¥2,000
DOE4％
Payout ratioAt least 30%
Financial targets
FY2026 ROE8.0％
FY2028 ROE20.0％
Annual Dividend
¥12 (payout ratio: 30%)
Payout ratio
30% (FY2026 target); 30% or higher (FY2028 target)
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥18,847 million (YoY +41.8%)
Operating profit¥185 million
Ordinary income¥283 million
Net income¥-93 million (interim net income attributable to owners of the parent)
Full-year earnings forecastNet Sales ¥40,000 million / Adjusted operating profit before amortization of goodwill (EBITA) ¥2,055 million / Operating profit ¥1,500 million / Ordinary income ¥1,310 million / Profit attributable to owners of the parent ¥780 million
Self-assessment against the planFirst-half revenue, operating profit and ordinary profit exceeded the forecast, while first-half net income fell short of the forecast
Segment resultsJapan Blue Adjusted EBITA, up ¥1,187 million year on year / Dynacity Adjusted EBITA, up ¥70 million year on year (Shopping Center Division: up ¥125 million; Corporate Real Estate Division: down ¥57 million) / Brooks Brothers Adjusted EBITA, up ¥42 million year on year / Ponte Torto Adjusted EBITA, down ¥188 million year on year / New Yorker Adjusted EBITA, down ¥34 million year on year
Breakdown of Factors Affecting the ChangeJapan Blue +¥1,187 million / Dynacity +¥70 million / Brooks Brothers +¥42 million / Ponte Torto △¥188 million / New Yorker -¥34 million
Key KPIsOverseas revenue ratio (FY2024) 19.7％ / Overseas sales ratio (FY2035 target) Above 50% / Number of countries and regions where Japan Blue is deployed 26 countries and regions
Medium-term management plan targetsFY2026 Net Sales ¥36 billion / Operating profit ¥1.5 billion / ROE 8.0％ / Dividends ¥12 (payout ratio: 30%) / FY2028 Net Sales ¥65.0 billion / Operating profit ¥4 billion / ROE 20.0％ / Share price ¥2,000 / DOE 4％ / Payout ratio At least 30%
Financial targetsFY2026 ROE 8.0％ / FY2028 ROE 20.0％
Annual Dividend¥12 (payout ratio: 30%)
Payout ratio30% (FY2026 target); 30% or higher (FY2028 target)
Key points of the Q&AIs the return to operating profitability temporary? The company explained that the consolidation of Japan Blue's full-year contribution is driving a shift in the earnings structure, although quarterly profit may fluctuate., Reason for acquiring 4strengX: to expand into the wellness sector and maximize customer lifetime value by combining it with the existing customer base, Impact of 4strengX on results: adjusted EBITA of ¥300 million and goodwill amortization expense of ¥208 million are forecast for FY2026, Future M&A: considering companies with high value added, high growth and high profitability that complement and strengthen existing capabilities, Likelihood of achieving full-year operating profit of ¥1,500 million: ¥1,315 million will be required in the second half, but the company expects contributions from seasonality, growth in existing businesses and 4strengX
New initiatives4strengX, the protein business, was made a consolidated subsidiary, with a contribution to consolidated results planned from the third quarter, The Japan Blue Jeans KOJIMA flagship store will reopen following renovations on 1 October 2026, Launch of the first collaboration collection between Brooks Brothers and NEEDLES, NEWYORKER entered into a partnership with Kashima Antlers and the Tokyo Sunrockers as their official suit supplier
Items this document does not state (14)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share

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 results of Japan Blue, which became a consolidated subsidiary at the end of the previous first half, were incorporated into the results. Other factors behind the increase in profit included strong inbound tourism demand, the effects of opening new stores, and the collaboration with Brooks Brothers. The shortfall in first-half net income versus forecast was due mainly to some planned sales of assets being pushed back to the second half.

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Supplementary Materials to the Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | DAIDOH LIMITED (3205) timely disclosure | Komori