Earnings Briefing Materials for the Interim Period of the Fiscal Year Ending February 2027 | NAKAMOTO PACKS CO.,LTD. (7811) timely disclosure

Worth reading

84Important

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

843

Millions of yen (year-on-year increase in operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsInterim period of the fiscal year ending February 2027 (cumulative second quarter)12 items taken from the company’s own explanation

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

Net Sales¥28,068 million+12.3%

Operating profit¥2,454 million+52.4%

Ordinary income¥2,499 million+59.4%

Net income¥1,641 million +54.8%interim net income attributable to owners of the parent

Operating profit margin8.7 %; up 2.3 percentage points year on year

Selling, general and administrative expenses¥3,124 million; SG&A ratio to revenue 11.1%

Results for the three months of the current quarterConsolidated revenue was ¥12,767 million, consolidated operating profit was ¥1,654 million, and the operating margin was 10.8%. Revenue and profit reached record highs in both the first and second quarters of the fiscal year ending February 2027.

Full-year earnings forecast

Net Sales

¥55,000 million

Gross profit

¥10,274 million

Selling, general and administrative expenses

¥6,400 million

Operating profit

¥3,874 million

Ordinary income

¥4,000 million

Profit attributable to owners of the parent

¥2,566 million

What the company explained in this material

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

Interim results exceeded the initial plan. Revenue was 10.1% above plan, operating profit was 58.6% above plan, ordinary profit was 51.3% above plan, and interim net profit attributable to owners of the parent was 54.5% above plan.

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

Operating profitProduction efficiency improvements: +¥339 million; sales activities to win new customers and price pass-through: +¥344 million; increase in profit from the IT and industrial materials business: +¥401 million; effect of optimizing product procurement: +¥93 million; higher manufacturing costs: -¥264 million; higher SG&A expenses: -¥72 million; other: +¥2 million

Net SalesFood-related: +¥2,287 million; IT and industrial materials: +¥619 million; daily-use materials: -¥179 million; construction materials: +¥307 million; medical and pharmaceutical: +¥5 million; other: +¥40 million

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

Assumed exchange rates of ¥20.1 per yuan and ¥142.0 per dollar. The company explained that base film, ink, utilities, and logistics costs remain elevated.

New initiatives

Begin operating the PD coater from the end of September 2026
Plan to establish an R&D center within the new Saitama plant during the fiscal year ending February 2027
Continue considering proactive M&A
Optimize production and logistics by establishing an SCM department
Monetize RN Smart Packaging and expand sales of Label-less Thermal, SmaRange®, and RESC®

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

Consolidated Net Sales¥28,068 million
Year on year against the same period last year+12.3%
Consolidated operating income¥2,454 million
Year on year against the same period last year+52.4%
Capital expenditures¥307 million
Year on year against the same period last year-70.4%
Depreciation¥631 million
Year on year against the same period last year+4.8%

Segment results

Food-Related Business
Net Sales¥18,146 million
Gross profit¥2,692 million
Year on year against the same period last yearBoth revenue and gross profit increased
IT and Industrial Materials
Net Sales¥5,234 million
Gross profit¥1,504 million
Year on year against the same period last yearBoth revenue and gross profit increased
Household materials
Net Sales¥2,185 million
Gross profit¥916 million
Year on year against the same period last yearLower sales and lower profits
Building materials
Net Sales¥1,197 million
Gross profit¥191 million
Year on year against the same period last yearIncreased
Medical and Pharmaceutical Products
Net Sales¥812 million
Gross profit¥188 million
Year on year against the same period last yearBoth revenue and gross profit increased

Medium-term management plan targets

Medium-Term Management Plan 2027 (fiscal years ending February 2027 to February 2029). Targets for the fiscal year ending February 2029 are revenue of ¥70 billion, ordinary profit of ¥6 billion, and ROE of at least 13%. The company aims for ¥10 billion in revenue from its next-generation battery business.

Financial targets

ROE of at least 13% (target under Medium-Term Management Plan 2027)

Capital expenditures

¥1,560 million fiscal year ending February 2027 plan

Annual Dividend

Annual dividend of ¥82 planned (¥41 interim and ¥41 year-end planned). An ¥11 increase in the annual dividend is planned from the previous fiscal year.

Payout ratio

Payout ratio of 29.3% (forecast for the fiscal year ending February 2027)

Gross profit

¥5,579 million; gross margin 19.9%, up 1.2 percentage points year on year

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	Interim period of the fiscal year ending February 2027 (cumulative second quarter)
Net Sales	¥28,068 million (YoY +12.3%)
Operating profit	¥2,454 million (YoY +52.4%)
Ordinary income	¥2,499 million (YoY +59.4%)
Net income	¥1,641 million (interim net income attributable to owners of the parent) (YoY +54.8%)
Gross profit	¥5,579 million; gross margin 19.9%, up 1.2 percentage points year on year
Operating profit margin	8.7 %; up 2.3 percentage points year on year
Selling, general and administrative expenses	¥3,124 million; SG&A ratio to revenue 11.1%
Results for the three months of the current quarter	Consolidated revenue was ¥12,767 million, consolidated operating profit was ¥1,654 million, and the operating margin was 10.8%. Revenue and profit reached record highs in both the first and second quarters of the fiscal year ending February 2027.
Full-year earnings forecast	Net Sales ¥55,000 million / Gross profit ¥10,274 million / Selling, general and administrative expenses ¥6,400 million / Operating profit ¥3,874 million / Ordinary income ¥4,000 million / Profit attributable to owners of the parent ¥2,566 million
Self-assessment against the plan	Interim results exceeded the initial plan. Revenue was 10.1% above plan, operating profit was 58.6% above plan, ordinary profit was 51.3% above plan, and interim net profit attributable to owners of the parent was 54.5% above plan.
Segment results	Segment Food-Related Business / Net Sales ¥18,146 million / Gross profit ¥2,692 million / Year on year against the same period last year Both revenue and gross profit increased, Segment IT and Industrial Materials / Net Sales ¥5,234 million / Gross profit ¥1,504 million / Year on year against the same period last year Both revenue and gross profit increased, Segment Household materials / Net Sales ¥2,185 million / Gross profit ¥916 million / Year on year against the same period last year Lower sales and lower profits, Segment Building materials / Net Sales ¥1,197 million / Gross profit ¥191 million / Year on year against the same period last year Increased, Segment Medical and Pharmaceutical Products / Net Sales ¥812 million / Gross profit ¥188 million / Year on year against the same period last year Both revenue and gross profit increased
Breakdown of Factors Affecting the Change	Operating profit Production efficiency improvements: +¥339 million; sales activities to win new customers and price pass-through: +¥344 million; increase in profit from the IT and industrial materials business: +¥401 million; effect of optimizing product procurement: +¥93 million; higher manufacturing costs: -¥264 million; higher SG&A expenses: -¥72 million; other: +¥2 million / Net Sales Food-related: +¥2,287 million; IT and industrial materials: +¥619 million; daily-use materials: -¥179 million; construction materials: +¥307 million; medical and pharmaceutical: +¥5 million; other: +¥40 million
Key KPIs	Indicator Consolidated Net Sales / Value ¥28,068 million / Year on year against the same period last year +12.3%, Indicator Consolidated operating income / Value ¥2,454 million / Year on year against the same period last year +52.4%, Indicator Capital expenditures / Value ¥307 million / Year on year against the same period last year -70.4%, Indicator Depreciation / Value ¥631 million / Year on year against the same period last year +4.8%
Assumptions Underlying the Business Outlook	Assumed exchange rates of ¥20.1 per yuan and ¥142.0 per dollar. The company explained that base film, ink, utilities, and logistics costs remain elevated.
Medium-term management plan targets	Medium-Term Management Plan 2027 (fiscal years ending February 2027 to February 2029). Targets for the fiscal year ending February 2029 are revenue of ¥70 billion, ordinary profit of ¥6 billion, and ROE of at least 13%. The company aims for ¥10 billion in revenue from its next-generation battery business.
Financial targets	ROE of at least 13% (target under Medium-Term Management Plan 2027)
Annual Dividend	Annual dividend of ¥82 planned (¥41 interim and ¥41 year-end planned). An ¥11 increase in the annual dividend is planned from the previous fiscal year.
Payout ratio	Payout ratio of 29.3% (forecast for the fiscal year ending February 2027)
Capital expenditures	¥1,560 million (fiscal year ending February 2027 plan)
New initiatives	Begin operating the PD coater from the end of September 2026, Plan to establish an R&D center within the new Saitama plant during the fiscal year ending February 2027, Continue considering proactive M&A, Optimize production and logistics by establishing an SCM department, Monetize RN Smart Packaging and expand sales of Label-less Thermal, SmaRange®, and RESC®

Items this document does not state (9)

Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders 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.

The food-related business reported higher revenue and profit, driven by increased sales of food packaging for dairy products and agricultural products, packaging materials for processed seafood products, paper products, and top seals. The IT and industrial materials business also reported higher revenue and profit, supported by growth in smartphone applications, semiconductor-related products, and industrial materials. In addition, improvements in production efficiency, sales activities to win new customers and pass through prices, and optimization of product procurement boosted operating profit. Meanwhile, higher manufacturing costs and increased selling, general and administrative expenses reduced profit.

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