Worth reading
90Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
-73
¥100 million (year-on-year change in business profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,792 million+4.0%
Operating profit¥17 100 million -81.3%business profit
Net income¥-35 100 million -26.0%profit for the quarter attributable to owners of the parent
Selling, general and administrative expenses70 Year-on-year increase in SG&A expenses in ¥100 million. The SG&A ratio deteriorated by 0.6 percentage points year on year.
Gross Profit MarginDown 1.4 percentage points year on year (margin level: not disclosed)
Operating profit margin0.4%, down 2.0 percentage points year on year (IFRS business profit margin)
Results for the three months of the current quarterRevenue of ¥379.2 billion, business profit of ¥1.7 billion, EBITDA of ¥22.6 billion, and a loss for the quarter of ¥3.5 billion. Domestic sales declined 3% year on year, while overseas sales rose 17% excluding foreign exchange effects.
Full-year earnings forecastBusiness profit of ¥45.0 billion. Full-year forecasts for individual items, including revenue, were not disclosed. The dividend forecast is unchanged.
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。The bridge chart shows progress by factor against the full-year business profit plan of ¥45.0 billion. Progress rates for changes in domestic sales and price revisions were not disclosed; mix and selling prices were 15%, cost changes 39%, SG&A expenses 16%, overseas business 0%, and consolidation adjustments and other factors 3%.
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The factors behind the decline in business profit from ¥9.0 billion in the prior-year period to ¥1.7 billion were changes in domestic sales of +¥5.3 billion, mix and selling prices of +¥20.7 billion, cost changes of -¥19.8 billion, SG&A expenses of -¥4.6 billion, overseas business of +¥9.4 billion, and consolidation adjustments and other factors of -¥4.5 billion.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The assumed exchange rates are ¥155.0 to the US dollar and ¥186.0 to the euro. The assumed aluminum price is ¥470,000 per ton and the copper alloy price is ¥1.336 million per ton.New initiatives
The Company signed a memorandum of cooperation with JICA to promote the development of a sanitation economy. Artificial wood decking using the circular material revia will be launched nationwide from June 2026. The Company also began operating technology to recycle approximately 200 tons of ceramic fragments annually.Key KPIsA metric the company considers important as a management benchmark.
Overseas sales accounted for 63.7%, up 3.9 percentage points year on year, while overseas business profit accounted for 50.8%, unchanged year on year. Domestic renovation sales declined from ¥97.0 billion to ¥94.5 billion. Renovation sales accounted for 47%, down 0.5 percentage points year on year. EBITDA was ¥22.6 billion, down ¥6.7 billion year on year.Unit price and quantity metricsThese figures show sales broken down by price and volume.
LWT overseas sales increased as price revisions were implemented and sales volumes grew. Changes in sales volumes by region were also disclosed, but specific volume figures were not disclosed.Segment results
LWT's profit was flat in both Japan and overseas. LHT reported lower profit and a loss, while Living reported lower profit. LWT overseas operations generated revenue of ¥133.9 billion and business profit of ¥5.4 billion, with revenue up 16% year on year. Regional revenue was ¥38.2 billion in the Americas, ¥53.3 billion in Europe, ¥20.3 billion in India, the Middle East and Africa, ¥9.3 billion in Asia-Pacific, and ¥9.5 billion in China. A complete list of sales and profit figures for all segments was not disclosed.Financial targets
The equity ratio was 33.8%. A target value for the financial objective was not disclosed.Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The business profit forecast bridge includes cost increases of ¥49.2 billion and additional measures worth ¥21.0 billion. These comprise higher costs for raw materials and other materials, fuel and electricity, and logistics, together with responses including price revisions and cost reductions.Annual Dividend
Not disclosed (the dividend forecast is unchanged)| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥3,792 million (YoY +4.0%) |
| Operating profit | ¥17 100 million (business profit) (YoY -81.3%) |
| Net income | ¥-35 100 million (profit for the quarter attributable to owners of the parent) (YoY -26.0%) |
| Gross Profit Margin | Down 1.4 percentage points year on year (margin level: not disclosed) |
| Operating profit margin | 0.4%, down 2.0 percentage points year on year (IFRS business profit margin) |
| Selling, general and administrative expenses | 70 Year-on-year increase in SG&A expenses in ¥100 million. The SG&A ratio deteriorated by 0.6 percentage points year on year. |
| Results for the three months of the current quarter | Revenue of ¥379.2 billion, business profit of ¥1.7 billion, EBITDA of ¥22.6 billion, and a loss for the quarter of ¥3.5 billion. Domestic sales declined 3% year on year, while overseas sales rose 17% excluding foreign exchange effects. |
| Full-year earnings forecast | Business profit of ¥45.0 billion. Full-year forecasts for individual items, including revenue, were not disclosed. The dividend forecast is unchanged. |
| Progress against full-year forecast | The bridge chart shows progress by factor against the full-year business profit plan of ¥45.0 billion. Progress rates for changes in domestic sales and price revisions were not disclosed; mix and selling prices were 15%, cost changes 39%, SG&A expenses 16%, overseas business 0%, and consolidation adjustments and other factors 3%. |
| Segment results | LWT's profit was flat in both Japan and overseas. LHT reported lower profit and a loss, while Living reported lower profit. LWT overseas operations generated revenue of ¥133.9 billion and business profit of ¥5.4 billion, with revenue up 16% year on year. Regional revenue was ¥38.2 billion in the Americas, ¥53.3 billion in Europe, ¥20.3 billion in India, the Middle East and Africa, ¥9.3 billion in Asia-Pacific, and ¥9.5 billion in China. A complete list of sales and profit figures for all segments was not disclosed. |
| Breakdown of Factors Affecting the Change | The factors behind the decline in business profit from ¥9.0 billion in the prior-year period to ¥1.7 billion were changes in domestic sales of +¥5.3 billion, mix and selling prices of +¥20.7 billion, cost changes of -¥19.8 billion, SG&A expenses of -¥4.6 billion, overseas business of +¥9.4 billion, and consolidation adjustments and other factors of -¥4.5 billion. |
| Key KPIs | Overseas sales accounted for 63.7%, up 3.9 percentage points year on year, while overseas business profit accounted for 50.8%, unchanged year on year. Domestic renovation sales declined from ¥97.0 billion to ¥94.5 billion. Renovation sales accounted for 47%, down 0.5 percentage points year on year. EBITDA was ¥22.6 billion, down ¥6.7 billion year on year. |
| Unit price and quantity metrics | LWT overseas sales increased as price revisions were implemented and sales volumes grew. Changes in sales volumes by region were also disclosed, but specific volume figures were not disclosed. |
| Assumptions Underlying the Business Outlook | The assumed exchange rates are ¥155.0 to the US dollar and ¥186.0 to the euro. The assumed aluminum price is ¥470,000 per ton and the copper alloy price is ¥1.336 million per ton. |
| Risk amount incorporated into the outlook | The business profit forecast bridge includes cost increases of ¥49.2 billion and additional measures worth ¥21.0 billion. These comprise higher costs for raw materials and other materials, fuel and electricity, and logistics, together with responses including price revisions and cost reductions. |
| Financial targets | The equity ratio was 33.8%. A target value for the financial objective was not disclosed. |
| Annual Dividend | Not disclosed (the dividend forecast is unchanged) |
| New initiatives | The Company signed a memorandum of cooperation with JICA to promote the development of a sanitation economy. Artificial wood decking using the circular material revia will be launched nationwide from June 2026. The Company also began operating technology to recycle approximately 200 tons of ceramic fragments annually. |
Items this document does not state (11)
Ordinary incomeSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsPayout ratioAcquisition of treasury sharesCapital 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.Profit declined mainly because aluminum and material prices rose at LHT and the renovation-sales mix declined across the domestic businesses. Higher SG&A expenses and the absence of inventory valuation gains at LHT also weighed on profit.
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.