Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending February 2027 | IZAWA TOWEL CO.,LTD. (365A) timely disclosure

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

¥ million (consolidated operating income)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending February 2027, second quarter11 items taken from the company’s own explanation

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

Net Sales¥5,380 million

Operating profit¥52 million

Ordinary income¥308 million

Net income¥174 million

Gross Profit Margin18.5 %

Operating profit margin1 %

Selling, general and administrative expenses¥940 million

Results for the three months of the current quarter

Net Sales¥2,840 million non-consolidated, second quarter only

Gross profit¥473 million non-consolidated, second quarter only

Full-year earnings forecast

Net Sales

¥11,650 million

Operating profit

¥825 million

Ordinary income

¥1,082 million

Profit attributable to owners of the parent

¥638 million

Earnings per share

¥68.58

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 Sales46.2

Operating profit6.3

Ordinary income28.5

Net income before amortization of goodwill32.8

What the company explained in this material

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

The company will promote initiatives to improve profit in the second half and aims to achieve its target.

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

Higher Procurement Costs Due to Yen Depreciation
Upfront investments, including advertising expenses at the U.S. subsidiary
Foreign Exchange Gains¥277 million
Impact of subsidiaries and consolidation adjustments on operating profit¥-20 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Exchange rate¥156.74 /US$ average for the most recent 12 months

New initiatives

Opening a store on Rakuten Ichiba on 24 August 2026
Opening stores on new e-commerce marketplaces, including ZOZOTOWN
Transferring production from China to India and Vietnam
Voluntary adoption of IFRS from the fiscal year ending February 2029
Launch of the company's own premium brand, i-TOWEL
Recruitment of a head of the U.S. subsidiary and appointment as CFO
Corporate identity refresh and corporate website redesign
Obtaining a patent for proprietary woven pile fabric

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

Revenue before rebates¥5,652 million
Year on year against the same period last yearRecord high
Gross profit margin before rebates22.4 %
ROE21.6 %
India production ratio23 %
Stores carrying Towel Research Institute products3,000 Location
Amazon.co.jp sales115.4 % year on year
Year on year against the same period last year+115.4%
Sales through Amazon Business148.8 % year on year
Year on year against the same period last year+148.8%

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

Average spend per customer on Rakuten Ichiba¥4,533 /purchase
Women in their 30s to 50s as a proportion of Rakuten Ichiba purchasers50.7 %

Segment results

ODM

Year on year against the same period last year+118.3%

Year on year against the same period last year+80.7%

Year on year against the same period last year+143.7%

Financial targets

DOE of 10% as a guideline. ROE: 21.6% actual

Number of stores and locations

3,000 stores carrying Towel Research Institute products. Number of store openings and closures during the period: Not disclosed

Annual Dividend

Annual¥42 per share

Interim¥21 per share

End of period¥21 per share

Acquisition of treasury shares

Number of shares acquired900,000 Shares

Acquisition price641 Shares

Purchase price unit¥ million

PeriodFebruary to June 2026 (including ¥560 million acquired during the current fiscal year)

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending February 2027, second quarter
Net Sales	¥5,380 million
Operating profit	¥52 million
Ordinary income	¥308 million
Net income	¥174 million
Gross Profit Margin	18.5 %
Operating profit margin	1 %
Selling, general and administrative expenses	¥940 million
Results for the three months of the current quarter	Net Sales ¥2,840 million (non-consolidated, second quarter only) / Gross profit ¥473 million (non-consolidated, second quarter only) / Operating profit Not disclosed
Full-year earnings forecast	Net Sales ¥11,650 million / Operating profit ¥825 million / Ordinary income ¥1,082 million / Profit attributable to owners of the parent ¥638 million / Earnings per share ¥68.58
Progress against full-year forecast	Net Sales 46.2 / Operating profit 6.3 / Ordinary income 28.5 / Net income before amortization of goodwill 32.8
Self-assessment against the plan	The company will promote initiatives to improve profit in the second half and aims to achieve its target.
Segment results	ODM Net Sales Not disclosed / Year on year against the same period last year 118.3 / IP Net Sales Not disclosed / Year on year against the same period last year 80.7 / EC Net Sales Not disclosed / Year on year against the same period last year 143.7 / Profit Not disclosed
Breakdown of Factors Affecting the Change	Factors Higher Procurement Costs Due to Yen Depreciation / Amount Not disclosed, Factors Upfront investments, including advertising expenses at the U.S. subsidiary / Amount Not disclosed, Factors Foreign Exchange Gains / Amount ¥277 million, Factors Impact of subsidiaries and consolidation adjustments on operating profit / Amount ¥-20 million
Key KPIs	Indicator name Revenue before rebates / Value ¥5,652 million / Year on year against the same period last year Record high, Indicator name Gross profit margin before rebates / Value 22.4 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 21.6 % / Year on year against the same period last year Not disclosed, Indicator name India production ratio / Value 23 % / Year on year against the same period last year Not disclosed, Indicator name Stores carrying Towel Research Institute products / Value 3,000 Location / Year on year against the same period last year Not disclosed, Indicator name Amazon.co.jp sales / Value 115.4 % year on year / Year on year against the same period last year 115.4 % year on year, Indicator name Sales through Amazon Business / Value 148.8 % year on year / Year on year against the same period last year 148.8 % year on year
Unit price and quantity metrics	Indicator name Average spend per customer on Rakuten Ichiba / Value ¥4,533 /purchase, Indicator name Women in their 30s to 50s as a proportion of Rakuten Ichiba purchasers / Value 50.7 %
Number of stores and locations	3,000 stores carrying Towel Research Institute products. Number of store openings and closures during the period: Not disclosed
Assumptions Underlying the Business Outlook	Exchange rate ¥156.74 /US$ (average for the most recent 12 months)
Financial targets	DOE of 10% as a guideline. ROE: 21.6% actual
Annual Dividend	Annual ¥42 per share / Interim ¥21 per share / End of period ¥21 per share
Acquisition of treasury shares	Number of shares acquired 900,000 Shares / Acquisition price 641 Shares / Purchase price unit ¥ million / Period February to June 2026 (including ¥560 million acquired during the current fiscal year)
New initiatives	Opening a store on Rakuten Ichiba on 24 August 2026, Opening stores on new e-commerce marketplaces, including ZOZOTOWN, Transferring production from China to India and Vietnam, Voluntary adoption of IFRS from the fiscal year ending February 2029, Launch of the company's own premium brand, i-TOWEL, Recruitment of a head of the U.S. subsidiary and appointment as CFO, Corporate identity refresh and corporate website redesign, Obtaining a patent for proprietary woven pile fabric

Items this document does not state (8)

Number of employeesRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioCapital expendituresOrders received and order backlogMarket 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.

Higher procurement costs resulting from the weaker yen, upfront investments including advertising expenses at the U.S. subsidiary, and marketing and personnel investments aimed at medium- to long-term growth weighed on operating profit. Revenue, however, increased on growth in ODM and e-commerce.

How to read this page

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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.