Worth reading
69In 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
40.3
Year-on-year change in revenue (%)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales+40.3% year on year+40.3%
Operating profit¥193 million
Net income¥169 million
Results for the three months of the current quarter
Revenue+40.3% year on year
Gross profit+39.2% year on year
Operating profit¥193 million (¥298 million in the year-earlier period)
Profit for the period attributable to owners of the parent¥169 million (¥33 million in the year-earlier period)
Full-year earnings forecast
Revenue+38.1% year on year
Gross profit+38.4% year on year
Organic revenue growth rate+23%
Organic gross profit growth rate+22%
Organic operating profit growth rate+26%
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。
Revenue22%
Gross profit22%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Exceeded the internal planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Assessment of first-quarter results / Answer Revenue and gross profit are progressing at a pace exceeding the full-year forecast, representing a strong start. Operating profit declined but exceeded the internal plan.
- Issues Business and regional performance / Answer The Corporate Brand Support Business achieved high growth. The company grew across its key regions, including Japan and South Korea and Southeast Asia.
- Issues Background to the share buyback / Answer The company resolved to conduct a share buyback of up to ¥500 million in total, with the objectives of returning profits to shareholders, improving EPS and capital efficiency, and using the shares as consideration in M&A transactions.
- Issues Factors behind the increase in SG&A expenses / Answer The main factors were personnel expenses, office expansion costs, EC fees, warehousing and logistics costs, and M&A advisory fees. Going forward, the company intends to contain expense growth.
- Issues Post-M&A PMI / Answer Results are beginning to emerge from collaboration with Bcode, MISM, and Sun Smile, including live commerce, in-house production of advertising creative, and an OMO platform equipped with AI agents.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Foreign exchange losses in the same period of the previous year¥146 million
- Foreign exchange gain in the current period¥22 million
- Quarterly increase in fixed costs associated with office expansion¥91 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Seasonality under which the first quarter is the weakest quarter due to the business structure
- Organic revenue growth rate of +23%
- Organic gross profit growth rate of +22%
- Organic operating profit growth rate of +26%
New initiatives
- Development and implementation of AI agents in the Marketing Business
- Conducting live commerce with Bcode
- Bringing advertising creative production in-house in collaboration with MISM
- Launching the AI-agent-enabled platform “AnyAI OMO” in collaboration with Sun Smile
- Share Repurchases
Key KPIsA metric the company considers important as a management benchmark.
- Corporate Brand Support Business share of total company gross profit76 %
- Total company gross profit growth rate in Japan and South Korea70 %Year on year against the same period last year+70%
- Total company gross profit growth rate in Southeast Asia14 %Year on year against the same period last year+14%
- Total company gross profit growth rate in other regions-2 %Year on year against the same period last year△2%
- Number of sponges sold through collaboration with BcodeMore than 4,300
- Combined sales of stores adopting Advanced ClinicalsApproximately 1.5x
Segment results
- Gross profitSegmentCorporate Brand Support BusinessYear on year against the same period last year+63%Share of total company gross profit76%
- Gross profitSegmentMarketing BusinessYear on year against the same period last year+24%
- Gross profitSegmentD2C/EC BusinessYear on year against the same period last year+151%Organic year-on-year change+85%
- Gross profitSegmentPublisher Support BusinessYear on year against the same period last year+4%
- Gross profitSegmentCreator Support BusinessYear on year against the same period last year△12%
Number of stores and locations
Sun Smile Co., Ltd. has business relationships with more than 30,000 stores in Japan. The number of stores at period-end and the number of store openings and closures during the period are undisclosed.Number of employees
Net increase of 64 employees on an organic basis (from the end of March 2025 to the end of March 2026)
Change+64 employees (+3%)
Acquisition of treasury shares
Total acquisition price¥500 million (maximum)
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending December 2026 |
| Net Sales | +40.3% year on year (YoY +40.3%) |
| Operating profit | ¥193 million |
| Net income | ¥169 million |
| Results for the three months of the current quarter | Revenue +40.3% year on year / Gross profit +39.2% year on year / Operating profit ¥193 million (¥298 million in the year-earlier period) / Profit for the period attributable to owners of the parent ¥169 million (¥33 million in the year-earlier period) |
| Full-year earnings forecast | Revenue +38.1% year on year / Gross profit +38.4% year on year / Organic revenue growth rate +23% / Organic gross profit growth rate +22% / Organic operating profit growth rate +26% |
| Progress against full-year forecast | Revenue 22% / Gross profit 22% |
| Self-assessment against the plan | Exceeded the internal plan |
| Segment results | Segment Corporate Brand Support Business / Indicator Gross profit / Year on year against the same period last year +63% / Share of total company gross profit 76%, Segment Marketing Business / Indicator Gross profit / Year on year against the same period last year +24%, Segment D2C/EC Business / Indicator Gross profit / Year on year against the same period last year +151% / Organic year-on-year change +85%, Segment Publisher Support Business / Indicator Gross profit / Year on year against the same period last year +4%, Segment Creator Support Business / Indicator Gross profit / Year on year against the same period last year △12% |
| Breakdown of Factors Affecting the Change | Factors Foreign exchange losses in the same period of the previous year / Amount ¥146 million, Factors Foreign exchange gain in the current period / Amount ¥22 million, Factors Quarterly increase in fixed costs associated with office expansion / Amount ¥91 million |
| Key KPIs | Indicator Corporate Brand Support Business share of total company gross profit / Value 76 % / Year on year against the same period last year Not disclosed, Indicator Total company gross profit growth rate in Japan and South Korea / Value 70 % / Year on year against the same period last year +70%, Indicator Total company gross profit growth rate in Southeast Asia / Value 14 % / Year on year against the same period last year +14%, Indicator Total company gross profit growth rate in other regions / Value -2 % / Year on year against the same period last year △2%, Indicator Number of sponges sold through collaboration with Bcode / Value More than 4,300 / Year on year against the same period last year Not disclosed, Indicator Combined sales of stores adopting Advanced Clinicals / Value Approximately 1.5x / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Sun Smile Co., Ltd. has business relationships with more than 30,000 stores in Japan. The number of stores at period-end and the number of store openings and closures during the period are undisclosed. |
| Number of employees | Value Net increase of 64 employees on an organic basis (from the end of March 2025 to the end of March 2026) / Change +64 employees (+3%) |
| Assumptions Underlying the Business Outlook | Seasonality under which the first quarter is the weakest quarter due to the business structure, Organic revenue growth rate of +23%, Organic gross profit growth rate of +22%, Organic operating profit growth rate of +26% |
| Acquisition of treasury shares | Total acquisition price ¥500 million (maximum) / Number of shares acquired Not disclosed / Period Not disclosed |
| Key points of the Q&A | Issues Assessment of first-quarter results / Answer Revenue and gross profit are progressing at a pace exceeding the full-year forecast, representing a strong start. Operating profit declined but exceeded the internal plan., Issues Business and regional performance / Answer The Corporate Brand Support Business achieved high growth. The company grew across its key regions, including Japan and South Korea and Southeast Asia., Issues Background to the share buyback / Answer The company resolved to conduct a share buyback of up to ¥500 million in total, with the objectives of returning profits to shareholders, improving EPS and capital efficiency, and using the shares as consideration in M&A transactions., Issues Factors behind the increase in SG&A expenses / Answer The main factors were personnel expenses, office expansion costs, EC fees, warehousing and logistics costs, and M&A advisory fees. Going forward, the company intends to contain expense growth., Issues Post-M&A PMI / Answer Results are beginning to emerge from collaboration with Bcode, MISM, and Sun Smile, including live commerce, in-house production of advertising creative, and an OMO platform equipped with AI agents. |
| New initiatives | Development and implementation of AI agents in the Marketing Business, Conducting live commerce with Bcode, Bringing advertising creative production in-house in collaboration with MISM, Launching the AI-agent-enabled platform “AnyAI OMO” in collaboration with Sun Smile, Share Repurchases |
Items this document does not state (13)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioCapital 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.Growth in the Corporate Brand Support Business exceeded expectations, while the consolidation effects of M&A, expansion of supported brands into multiple countries, and the strengthening of the sales organization also contributed to higher revenue and profit. The decline in operating profit was attributable to the reversal of special factors in the Creator Support Business in the year-earlier period and an increase in fixed costs related to growth investments. The increase in net profit was supported by an improvement in foreign exchange gains and losses, from a ¥146 million foreign exchange loss in the year-earlier period to a ¥22 million foreign exchange gain in the current period.
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