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Earnings presentation7695Reform Technology,Inc.Retail

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, sales increased significantly on strong orders in the 交換できるくん business and the effects of M&A, resulting in a shift from an operating loss in the same quarter of the previous year to an operating profit. Delaying the timing of advertising expenditures also contributed to the improvement in profitability.

Worth reading
56In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
1204
¥ million (year-on-year increase in consolidated net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst 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¥3,752 million+47.2%
Operating profit¥121 million
Ordinary income¥119 million
Net income¥66 million
Gross Profit Margin21.6%
Operating profit margin3.2%
Results for the three months of the current quarter
Consolidated operating profit
¥121 million
Housing Equipment DX Business sales
¥3,278 million
Solutions business sales
¥498 million
Full-year earnings forecast
Net Sales
¥15,300 million
Operating profit
¥450 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Although operating profit fell short of plan due to unbudgeted M&A costs in the previous fiscal year, business revenue was in line with plan
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Is there seasonality in quarterly sales? / Answer Sales are generally split 45:55 between the first and second halves, and demand in the first quarter tends to be weaker due to the Golden Week holiday period and other factors
  2. Questions Are sufficient resources available for the projects? / Answer We have allocated enough personnel from our current workforce to handle the planned volume, and also have spare capacity. We will hire as needed
  3. Questions What is the repeat-use rate? / Answer The specific figure has not been disclosed. Many users use the service again
  4. Questions What is the policy on expanding into regional cities? / Answer We currently serve Japan's seven major metropolitan areas, and for the time being will prioritize deepening our presence in existing areas
New initiatives
  • Plan for a newly established company split to transition to a holding company structure
  • Business alliance with Kyushu Electric Power and the opening of Enebee Store
  • Beginning to receive orders through the リプラフォーム replatforming platform
  • Qualitative shift in sales activities and AI initiatives
Key KPIsA metric the company considers important as a management benchmark.
  • Number of B2C projects completed16,521 Engagements
    Year-on-year (%)21.4
  • BtoB completed projects11,789 Engagements
    Year-on-year (%)13.3
  • Annual page views35,000,000 PV
  • Annual estimates134,000 Engagements
  • Annual projects completed63,000 Engagements
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of projects completed16,521 Engagements
    Business交換できるくん BtoC
    Year-on-year (%)21.4
  • Selling price per project¥152,751
    Business交換できるくん BtoC
  • Number of projects completed10,271 Engagements
    BusinessKDサービス BtoB
    Year-on-year (%)13.3
  • Selling price per project¥26,157
    BusinessKDサービス BtoB
Segment results
  • Housing Equipment DX business
    Net Sales¥3,278 million
    Operating profit¥137 million
  • Solutions Business
    Net Sales¥498 million
    Year-on-year change in revenue85.9
    Operating profit¥12 million
Medium-term management plan targets
Fiscal year ending March 2027
Net Sales
¥15,300 million
Operating profit
¥450 million
Financial targets
Equity ratio
37.4 %
As ofFirst quarter of the fiscal year ending March 2027
Market Size / Share
  • Housing equipment market¥2.8 trillion
  • Renovation Market¥7.3 trillion
  • Government target for the home renovation market in 20307～8
  • Sales performance of Takara Standard products in the Hokkaido areaNo. 1 for 19 consecutive years
Number of employees
373 people
Reference dateEnd of June 2026
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥3,752 million (YoY +47.2%)
Operating profit¥121 million
Ordinary income¥119 million
Net income¥66 million
Gross Profit Margin21.6%
Operating profit margin3.2%
Results for the three months of the current quarterConsolidated operating profit ¥121 million / Housing Equipment DX Business sales ¥3,278 million / Solutions business sales ¥498 million
Full-year earnings forecastNet Sales ¥15,300 million / Operating profit ¥450 million
Self-assessment against the planAlthough operating profit fell short of plan due to unbudgeted M&A costs in the previous fiscal year, business revenue was in line with plan
Segment resultsSegment Housing Equipment DX business / Net Sales ¥3,278 million / Year-on-year change in revenue Not disclosed / Operating profit ¥137 million / Year-on-year operating profit growth Not disclosed, Segment Solutions Business / Net Sales ¥498 million / Year-on-year change in revenue 85.9 / Operating profit ¥12 million / Year-on-year operating profit growth Not disclosed
Key KPIsNumber of B2C projects completed 16,521 Engagements, BtoB completed projects 11,789 Engagements, Annual page views 35,000,000 PV, Annual estimates 134,000 Engagements, Annual projects completed 63,000 Engagements
Unit price and quantity metrics16,521 Engagements, ¥152,751, 10,271 Engagements, ¥26,157
Number of employees373 people
Medium-term management plan targetsFiscal year ending March 2027 Net Sales ¥15,300 million / Operating profit ¥450 million
Financial targetsEquity ratio 37.4 %
Market Size / ShareHousing equipment market ¥2.8 trillion, Renovation Market ¥7.3 trillion, Government target for the home renovation market in 2030 7～8, Sales performance of Takara Standard products in the Hokkaido area No. 1 for 19 consecutive years
Key points of the Q&AQuestions Is there seasonality in quarterly sales? / Answer Sales are generally split 45:55 between the first and second halves, and demand in the first quarter tends to be weaker due to the Golden Week holiday period and other factors, Questions Are sufficient resources available for the projects? / Answer We have allocated enough personnel from our current workforce to handle the planned volume, and also have spare capacity. We will hire as needed, Questions What is the repeat-use rate? / Answer The specific figure has not been disclosed. Many users use the service again, Questions What is the policy on expanding into regional cities? / Answer We currently serve Japan's seven major metropolitan areas, and for the time being will prioritize deepening our presence in existing areas
New initiativesPlan for a newly established company split to transition to a holding company structure, Business alliance with Kyushu Electric Power and the opening of Enebee Store, Beginning to receive orders through the リプラフォーム replatforming platform, Qualitative shift in sales activities and AI initiatives
Items this document does not state (11)
Selling, general and administrative expensesProgress against full-year forecastBreakdown of Factors Affecting the ChangeNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog

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.

Strong orders in the 交換できるくん business, the incorporation of the results of Kitchen Works and other companies, expansion of the Solutions Business through M&A and the addition of immediately deployable engineers, the fact that branding advertising expenditures had not yet been incurred, and keeping SG&A expenses at the same level as in the same quarter of the previous year despite the increase in sales.

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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | Reform Technology,Inc. (7695) timely disclosure | Komori