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Earnings7952Kawai Musical Instruments Manufacturing Co.,Ltd.Information and Communications, Services and Others

Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated)

First-quarter revenue declined 3.9% year on year, while the operating loss narrowed from ¥500 million to ¥256 million. The ordinary loss and net loss also improved. Full-year earnings and annual dividend forecasts remain unchanged.

Worth reading
52Recurring
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
244
¥ millions (improvement in operating loss)
Wording
Conditional
How definitive the wording is.

Results for this period

First quarter1 April 2026 to 30 June 2026ConsolidatedJapanese GAAP
Net Sales17,098¥ millionYear on year -3.9%Progress 21.4%
Operating profit-256¥ million
Ordinary income-141¥ million
Net income attributable to owners of the parent-116¥ million

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share-¥13.59
Financial position at period-end
Total assets79,581¥ million
of which net assets 46,000 ¥ millionEquity ratio 57.8%vs. prior year-end -1.5pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Segment revenue
Musical instrument and education business14,17582.9%
Materials processing business2,20512.9%
Other Businesses7184.2%
Segment profit
Musical instrument and education business-354
Materials processing business112
Other Businesses1
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥80,000 million (YoY +11.0%)
Operating profit¥1,800 million
Ordinary income¥1,900 million (YoY +99.4%)
Net income¥1,600 million (YoY +40.1%)
Annual Dividend Forecast¥95 → ¥95(0.0%)
Factors Behind Changes in Business Performance

Sales of keyboard instruments grew in North America and Europe, and measures to optimize pricing, expand sales channels and raise brand awareness were effective. These factors were offset by sluggish instrument sales in China and Japan and by declines in orders related to semiconductors and automobiles and for IT equipment for medical institutions.

Disclosure regarding the going concern assumption

Not applicable.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNo significant changes (the number and names of newly consolidated or excluded companies are Not disclosed)
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥0 million, Gain on sale of investment securities ¥180 million / Extraordinary loss Loss on Disposal of Fixed Assets ¥8 million
Depreciation and amortization¥516 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person Not disclosed
Issued Shares at Period-End9,011,560 Shares
Treasury Shares at Period-End409,141 Shares
Results for this period
ItemDetails
Fiscal Period ClassificationFirst quarter
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 April 2026 to 30 June 2026
Net Sales¥17,098 million (YoY -3.9%)
Operating profit¥-256 million
Ordinary income¥-141 million
Profit attributable to owners of the parent¥-116 million
Net income per share-¥13.59
Equity ratioEnd of the current fiscal period 57.8 % / End of previous period 59.3 %
Total assets¥79,581 million
Net assets¥46,000 million
Full-year earnings forecastNet Sales ¥80,000 million (YoY +11.0%) / Operating profit ¥1,800 million / Ordinary income ¥1,900 million (YoY +99.4%) / Net income ¥1,600 million (YoY +40.1%)
Annual Dividend Forecast¥95 → ¥95(0.0%)
Segment revenueMusical instrument and education business ¥14,175 million / Materials processing business ¥2,205 million / Other Businesses ¥718 million
Segment profitMusical instrument and education business ¥-354 million / Materials processing business ¥112 million / Other Businesses ¥1 million
Depreciation and amortization¥516 million
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥0 million, Gain on sale of investment securities ¥180 million / Extraordinary loss Loss on Disposal of Fixed Assets ¥8 million
Disclosure regarding the going concern assumptionNot applicable.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNo significant changes (the number and names of newly consolidated or excluded companies are Not disclosed)
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person Not disclosed
Issued Shares at Period-End9,011,560 Shares
Treasury Shares at Period-End409,141 Shares
Factors Behind Changes in Business PerformanceSales of keyboard instruments grew in North America and Europe, and measures to optimize pricing, expand sales channels and raise brand awareness were effective. These factors were offset by sluggish instrument sales in China and Japan and by declines in orders related to semiconductors and automobiles and for IT equipment for medical institutions.
Items this document does not state (12)
Operating MarginCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodRevision to Earnings ForecastPayout ratioShareholder Return PolicyRegional salesOrders received and order backlogImpairment lossMaterial subsequent events

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.

Sales of keyboard instruments in North America and electronic pianos in Europe increased, while sales of acoustic pianos in China and entry-level electronic pianos in Japan remained sluggish. In the materials processing business, orders related to semiconductors and automobiles declined, while in the other businesses, orders for IT equipment for medical institutions decreased.

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Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated) | Kawai Musical Instruments Manufacturing Co.,Ltd. (7952) timely disclosure | Komori