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Financial Results Presentation7981TAKARA STANDARD CO.,LTD.Information and Communications, Services and Others

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

First-quarter net sales reached a record high, driven by growth in areas including remodeling, while all profit figures declined due to higher material prices resulting from the situation in the Middle East and increased expenses. Taking the impact of the situation in the Middle East into account, the full-year forecasts for net sales, operating profit and net profit were lowered from the initial plan.

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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-17
¥100 million (versus the initial full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending March 202717 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales624 Hundreds of millions of yen+1.8%
Operating profit36 Hundreds of millions of yen-14.2%
Ordinary income39 Hundreds of millions of yen-12.5%
Net income26 Hundreds of millions of yen-15.4%
Gross Profit Margin35.1
Operating profit margin5.8
Selling, general and administrative expenses183 Hundreds of millions of yen
Results for the three months of the current quarter
Net Sales¥62.4 billion
Operating profit¥3.6 billion
Ordinary income¥3.9 billion
Net income¥2.6 billion
Full-year earnings forecast
Net Sales
2,590 Hundreds of millions of yen
Operating profit
191 Hundreds of millions of yen
Ordinary income
198 Hundreds of millions of yen
Net income
143 Hundreds of millions of yen
Operating profit margin
7.4 %
ROE
7.4 %
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。
Net Sales24.1
Operating profit18.9
Ordinary income19.8
Net income18.2
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Below expectations / full-year forecast revised downward from the initial forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales and sales mix factors32 Hundreds of millions of yen
  • Higher unit prices and price revisions40 Hundreds of millions of yen
  • Rationalization and cost reductions14 Hundreds of millions of yen
  • Cost increases-66 Hundreds of millions of yen
  • Human Capital Investment-7 Hundreds of millions of yen
  • Other expenses-13 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • A material price adjustment surcharge is scheduled to be reflected in selling prices from September 2026
  • A separate price revision is scheduled to be implemented from April 2027
  • The situation in the Middle East is expected to stabilize toward the end of the fiscal year
New initiatives
  • Launch of the premium kitchen brand “Artevo” for condominiums
  • Joint research in the dental field with Tokushima University
  • Opening of the “Future Innovation Lab” research and development facility
  • Launch of a remodeling support campaign
  • Transfer of the IR Office to an organization reporting directly to the president
  • Change to a one-year term of office for directors and introduction of restricted stock compensation
Key KPIsA metric the company considers important as a management benchmark.
  • Year-on-year change in the number of system kitchens shipped by the Company-2.1 %
  • Year-on-year change in the number of system bathrooms shipped by the Company3.4 %
  • Year-on-year change in the number of bathroom vanities shipped by the Company-5.5 %
  • Kitchen market share30 %
  • Bathroom market share14 %
  • Vanity market share23 %
  • Number of overseas local distributors’ showrooms70 locations
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Disclosed: year-on-year change in units shipped, higher selling prices and increased remodeling sales volume. Customer numbers and average spend per customer: not disclosed
Segment results
not disclosed (sales by market and product division disclosed)
Medium-term management plan targets
Net Sales
2,500 Hundreds of millions of yen
Operating profit
200 Hundreds of millions of yen
Operating profit margin
8 %
ROE
8 %
Target fiscal yearFiscal year ending March 2027
Comparison with actual results and forecastsUnder the revised forecast, net sales are ¥9 billion above the target, operating profit is ¥900 million below the target, the operating margin is 0.6 percentage points below the target, and ROE is 0.6 percentage points below the target
Financial targets
ROE
Target8 %
Revised forecast7.4 %
Market Size / Share
Kitchen market shareApproximately 30% (No. 1)
Bathroom market shareApproximately 14% (No. 3)
Bathroom vanity market shareApproximately 23% (No. 3)
Kitchen unit share in newly built condominiums for sale80%
Bathroom vanity unit share in newly built condominiums for sale73%
Orders received and order backlog
Orders on hand in the new-build condominium market were described as solid. Amount: not disclosed
Number of stores and locations
ShowroomApproximately 160 locations across all 47 prefectures of Japan
Number of factories15
Number of logistics sites12
Overseas local distributors’ showrooms
End of period70
Change during the period-2
Number of employees
6,505 people
Record dateEnd of March 2026
Capital expenditures
256 Hundreds of millions of yen
Annual Dividend
¥124 per share
Interim62
End of period62
Payout ratio
50 %
Total payout ratioApproximately 130%
Acquisition of treasury shares
Buyback limitApproximately ¥12.0 billion
PeriodFiscal year ending March 2027
FY3/26 results¥10.4 billion
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales624 Hundreds of millions of yen (YoY +1.8%)
Operating profit36 Hundreds of millions of yen (YoY -14.2%)
Ordinary income39 Hundreds of millions of yen (YoY -12.5%)
Net income26 Hundreds of millions of yen (YoY -15.4%)
Gross Profit Margin35.1
Operating profit margin5.8
Selling, general and administrative expenses183 Hundreds of millions of yen
Results for the three months of the current quarterNet Sales ¥62.4 billion / Operating profit ¥3.6 billion / Ordinary income ¥3.9 billion / Net income ¥2.6 billion
Full-year earnings forecastNet Sales 2,590 Hundreds of millions of yen / Operating profit 191 Hundreds of millions of yen / Ordinary income 198 Hundreds of millions of yen / Net income 143 Hundreds of millions of yen / Operating profit margin 7.4 % / ROE 7.4 %
Progress against full-year forecastNet Sales 24.1 / Operating profit 18.9 / Ordinary income 19.8 / Net income 18.2
Self-assessment against the planBelow expectations / full-year forecast revised downward from the initial forecast
Segment resultsnot disclosed (sales by market and product division disclosed)
Breakdown of Factors Affecting the ChangeFactors Sales and sales mix factors / Amount 32 Hundreds of millions of yen, Factors Higher unit prices and price revisions / Amount 40 Hundreds of millions of yen, Factors Rationalization and cost reductions / Amount 14 Hundreds of millions of yen, Factors Cost increases / Amount -66 Hundreds of millions of yen, Factors Human Capital Investment / Amount -7 Hundreds of millions of yen, Factors Other expenses / Amount -13 Hundreds of millions of yen
Key KPIsIndicator name Year-on-year change in the number of system kitchens shipped by the Company / Value -2.1 %, Indicator name Year-on-year change in the number of system bathrooms shipped by the Company / Value 3.4 %, Indicator name Year-on-year change in the number of bathroom vanities shipped by the Company / Value -5.5 %, Indicator name Kitchen market share / Value 30 %, Indicator name Bathroom market share / Value 14 %, Indicator name Vanity market share / Value 23 %, Indicator name Number of overseas local distributors’ showrooms / Value 70 locations / Year on year against the same period last year Not disclosed
Unit price and quantity metricsDisclosed: year-on-year change in units shipped, higher selling prices and increased remodeling sales volume. Customer numbers and average spend per customer: not disclosed
Number of stores and locationsShowroom Approximately 160 locations across all 47 prefectures of Japan / Number of factories 15 / Number of logistics sites 12 / Overseas local distributors’ showrooms End of period 70 / Change during the period -2
Number of employees6,505 people
Assumptions Underlying the Business OutlookA material price adjustment surcharge is scheduled to be reflected in selling prices from September 2026, A separate price revision is scheduled to be implemented from April 2027, The situation in the Middle East is expected to stabilize toward the end of the fiscal year
Medium-term management plan targetsNet Sales 2,500 Hundreds of millions of yen / Operating profit 200 Hundreds of millions of yen / Operating profit margin 8 % / ROE 8 % / Target fiscal year Fiscal year ending March 2027 / Comparison with actual results and forecasts Under the revised forecast, net sales are ¥9 billion above the target, operating profit is ¥900 million below the target, the operating margin is 0.6 percentage points below the target, and ROE is 0.6 percentage points below the target
Financial targetsROE Target 8 % / Revised forecast 7.4 % / PBR Not disclosed
Annual Dividend¥124 per share
Payout ratio50 %
Acquisition of treasury sharesBuyback limit Approximately ¥12.0 billion / Number of Shares Not disclosed / Period Fiscal year ending March 2027 / FY3/26 results ¥10.4 billion
Capital expenditures256 Hundreds of millions of yen
Orders received and order backlogOrders on hand in the new-build condominium market were described as solid. Amount: not disclosed
Market Size / ShareKitchen market share Approximately 30% (No. 1) / Bathroom market share Approximately 14% (No. 3) / Bathroom vanity market share Approximately 23% (No. 3) / Kitchen unit share in newly built condominiums for sale 80% / Bathroom vanity unit share in newly built condominiums for sale 73%
New initiativesLaunch of the premium kitchen brand “Artevo” for condominiums, Joint research in the dental field with Tokushima University, Opening of the “Future Innovation Lab” research and development facility, Launch of a remodeling support campaign, Transfer of the IR Office to an organization reporting directly to the president, Change to a one-year term of office for directors and introduction of restricted stock compensation
Items this document does not state (2)
Risk amount incorporated into the outlookKey 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 full-year forecasts were revised to reflect higher material prices resulting from the escalating situation in the Middle East and delays to some construction schedules. In the first quarter, higher logistics and raw material costs due to inflation, together with increased expenses, particularly personnel expenses, also weighed on profits.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | TAKARA STANDARD CO.,LTD. (7981) timely disclosure | Komori