Komori
Earnings presentation6405Suzumo Machinery Co.,Ltd.Machinery

Financial Results Briefing Materials for the Fiscal Year Ending March 2026 (with Script)

In the fiscal year ended March 2026, revenue increased slightly, while operating profit declined significantly due to a decrease in domestic sales, an increase in lower-margin overseas products, and front-loaded personnel and outsourcing expenses. For the fiscal year ending March 2027, revenue is expected to increase, while operating profit is planned to remain at approximately the previous fiscal year's level.

Worth reading
53Recurring
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
-46.6
Year-on-year change in operating income (%)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥158.64 100 million+1.9%
Operating profit¥10 100 million-46.6%
Gross Profit MarginAmount not stated
Selling, general and administrative expenses¥6 100 million+10.2%
Full-year earnings forecast
Net Sales
¥175.8 100 million
Operating profit
¥10 100 million
Domestic revenue
¥107.8 100 million
Overseas revenue
¥68 100 million
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Issues Impact of the situation in the Middle East / Answer Materials required for current production have been secured for a certain period, but procurement availability three to four months ahead remains uncertain. Prices of some materials related to sales have increased, but there have been no price increases for production-related materials at this point.
  2. Issues Operating status and effects of the Tsurugashima new plant / Answer The utilization rate is in the single digits, and approximately 80 employees have transferred there. Production of the 4 core models will be increased going forward. Cost reductions and the ability to respond to demand fluctuations are expected, but it is difficult to provide a quantitative explanation of the effects at this point.
  3. Issues Impact of a ¥1 foreign-exchange movement / Answer A ¥1 movement in each of the U.S. dollar, euro and Singapore dollar would affect revenue by approximately ¥20 million to ¥30 million and operating profit by approximately ¥2 million to ¥3 million.
  4. Issues Growth potential in overseas markets / Answer Demand for machinery for cooked rice and sushi is expected to expand at supermarkets and KIOSKs in North America and Europe. The number of overseas restaurants operated by major conveyor-belt sushi chains is also increasing.
  5. Issues Items incorporated into the 10% revenue growth plan for the current fiscal year / Answer The plan mainly incorporates highly probable projects, including replacements for existing customers, new stores and additional installations, while uncertain business discussions have been conservatively excluded.
  6. Issues Why operating profit is expected to remain flat despite higher revenue / Answer Although depreciation of the new plant and new production management system, as well as personnel expenses, will increase, the company aims to improve its margin through price revisions, sales growth and operational efficiency.
  7. Issues Reasons for the plan calling for higher profit in the first half and lower profit in the second half / Answer The reasons are a change in the allocation of bonus provisions and the reversal of unrealized profit recorded in the second half of the previous fiscal year. In the second half of the previous fiscal year, the completion of deliveries of inventory for North America had an impact of more than ¥200 million in the direction of increasing profit.
  8. Issues Reason for a director's retirement / Answer The director's term expired, as part of the change to a new executive structure.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in gross profit¥-2.7 100 million
  • Increase in selling, general and administrative expensesApproximately 6
  • Rate of increase in SG&A expenses10.2 %
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • AssumptionsConservatively incorporate new business discussions, new-store plans and additional installations for existing customers
  • AssumptionsPotential adoption by U.S. customers
    Figures2,000 restaurants
New initiatives
  • Launch of commercial rice cookers developed in collaboration with Zojirushi
  • Launch of new products, including sushi robot forming machines and nori-roll cutters
  • Development and customer introduction testing of new labor-saving machines for sushi-related and non-sushi applications
  • Launch of the Tsurugashima Tech Plant and enhancement of production capacity
  • Transition to a company with an Audit and Supervisory Committee
  • Promotion of management, business and operational reforms, and digital transformation
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas Revenue Mix36.8 %
    Year on year against the same period last yearSignificant increase
  • Tsurugashima new plant utilization rateApproximately single digits
  • Number of overseas major conveyor-belt sushi chain restaurantsApproaching 90 restaurants
    Year on year against the same period last yearIncreased
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of onigiri-forming machines introduced in North AmericaSeveral thousand units
  • Number of commercial rice cookers introduced per restaurant5 or more units
Segment results
Domestic
Net Sales
¥100 100 million
Year on year against the same period last year-5.4%
Overseas expansion
Net Sales
¥58.3 100 million
Year on year against the same period last year+17.5%
Medium-term management plan targets
Plan nameNext 2028
Target fiscal year2028
Number of stores and locations
OtherThe number of restaurants operated by major Japanese conveyor-belt sushi chains in North America is approaching 90
Number of employees
Change during the periodIncreased
OtherApproximately 80 employees transferred to the Tsurugashima new plant
Annual Dividend
Annual¥35 per share
Interim¥15 per share
End of period¥20 per share
Payout ratio
Very high (figure not disclosed)
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥158.64 100 million (YoY +1.9%)
Operating profit¥10 100 million (YoY -46.6%)
Gross Profit Margin非開示
Selling, general and administrative expenses¥6 100 million (YoY +10.2%)
Full-year earnings forecastNet Sales ¥175.8 100 million / Operating profit ¥10 100 million / Domestic revenue ¥107.8 100 million / Overseas revenue ¥68 100 million
Segment resultsDomestic Net Sales ¥100 100 million / Year on year against the same period last year -5.4 / Profit Not disclosed / Overseas expansion Net Sales ¥58.3 100 million / Year on year against the same period last year 17.5 / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Decrease in gross profit / Amount ¥-2.7 100 million, Factors Increase in selling, general and administrative expenses / Amount Approximately 6, Factors Rate of increase in SG&A expenses / Amount 10.2 %
Key KPIsIndicator name Overseas Revenue Mix / Value 36.8 % / Year on year against the same period last year Significant increase, Indicator name Tsurugashima new plant utilization rate / Value Approximately single digits / Year on year against the same period last year Not disclosed, Indicator name Number of overseas major conveyor-belt sushi chain restaurants / Value Approaching 90 restaurants / Year on year against the same period last year Increased
Unit price and quantity metricsIndicator name Number of onigiri-forming machines introduced in North America / Value Several thousand units, Indicator name Number of commercial rice cookers introduced per restaurant / Value 5 or more units
Number of stores and locationsNumber at period-end Not disclosed / Number of store openings and closures during the period Not disclosed / Other The number of restaurants operated by major Japanese conveyor-belt sushi chains in North America is approaching 90
Number of employeesNumber of Employees Not disclosed / Change during the period Increased / Other Approximately 80 employees transferred to the Tsurugashima new plant
Assumptions Underlying the Business OutlookAssumptions Conservatively incorporate new business discussions, new-store plans and additional installations for existing customers / Figures Not disclosed, Assumptions Potential adoption by U.S. customers / Figures 2,000 restaurants
Medium-term management plan targetsPlan name Next 2028 / Target value Not disclosed / Target fiscal year 2028
Annual DividendAnnual ¥35 per share / Interim ¥15 per share / End of period ¥20 per share
Payout ratioVery high (figure not disclosed)
Key points of the Q&AIssues Impact of the situation in the Middle East / Answer Materials required for current production have been secured for a certain period, but procurement availability three to four months ahead remains uncertain. Prices of some materials related to sales have increased, but there have been no price increases for production-related materials at this point., Issues Operating status and effects of the Tsurugashima new plant / Answer The utilization rate is in the single digits, and approximately 80 employees have transferred there. Production of the 4 core models will be increased going forward. Cost reductions and the ability to respond to demand fluctuations are expected, but it is difficult to provide a quantitative explanation of the effects at this point., Issues Impact of a ¥1 foreign-exchange movement / Answer A ¥1 movement in each of the U.S. dollar, euro and Singapore dollar would affect revenue by approximately ¥20 million to ¥30 million and operating profit by approximately ¥2 million to ¥3 million., Issues Growth potential in overseas markets / Answer Demand for machinery for cooked rice and sushi is expected to expand at supermarkets and KIOSKs in North America and Europe. The number of overseas restaurants operated by major conveyor-belt sushi chains is also increasing., Issues Items incorporated into the 10% revenue growth plan for the current fiscal year / Answer The plan mainly incorporates highly probable projects, including replacements for existing customers, new stores and additional installations, while uncertain business discussions have been conservatively excluded., Issues Why operating profit is expected to remain flat despite higher revenue / Answer Although depreciation of the new plant and new production management system, as well as personnel expenses, will increase, the company aims to improve its margin through price revisions, sales growth and operational efficiency., Issues Reasons for the plan calling for higher profit in the first half and lower profit in the second half / Answer The reasons are a change in the allocation of bonus provisions and the reversal of unrealized profit recorded in the second half of the previous fiscal year. In the second half of the previous fiscal year, the completion of deliveries of inventory for North America had an impact of more than ¥200 million in the direction of increasing profit., Issues Reason for a director's retirement / Answer The director's term expired, as part of the change to a new executive structure.
New initiativesLaunch of commercial rice cookers developed in collaboration with Zojirushi, Launch of new products, including sushi robot forming machines and nori-roll cutters, Development and customer introduction testing of new labor-saving machines for sushi-related and non-sushi applications, Launch of the Tsurugashima Tech Plant and enhancement of production capacity, Transition to a company with an Audit and Supervisory Committee, Promotion of management, business and operational reforms, and digital transformation
Items this document does not state (12)
Ordinary incomeNet incomeOperating profit marginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planRisk amount incorporated into the outlookFinancial targetsAcquisition 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.

In Japan, sales were affected by the completion of major replacement demand, postponement of customers' capital investment due to soaring prices for rice, ingredients and materials, and delays in the introduction of new products and solution products. Operating profit was affected by the sales mix, which included lower-margin products; manufacturing expenses related to the launch of the new plant; personnel expenses associated with staff expansion and changes to the personnel system; external outsourcing costs; and expenses related to the acquisition of treasury shares.

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Financial Results Briefing Materials for the Fiscal Year Ending March 2026 (with Script) | Suzumo Machinery Co.,Ltd. (6405) timely disclosure | Komori