Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
-9
Year-on-year revenue growth (%)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsSecond quarter (interim period) of the fiscal year ending February 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥73,322 million-9.0%
Operating profit¥5,261 million-23.7%
Ordinary income¥5,426 million-22.8%
Net income¥3,412 million-23.2%
Gross Profit Margin20.1 %
Operating profit margin7.2 %
Selling, general and administrative expenses¥9,504 million
Results for the three months of the current quarter
Net Sales
¥37,587 million
Gross profit
¥7,614 million
Operating profit
¥2,769 million
Ordinary income
¥2,855 million
Net income
¥1,986 million
Full-year earnings forecast
Net Sales
¥168,000 million
Operating profit
¥13,400 million
Ordinary income
¥13,600 million
Profit attributable to owners of the parent
¥9,250 million
Dividend per share
¥44
BreakdownInterim: ¥22.00; year-end: ¥22.00
Earnings per share
¥82.89
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Decrease in gross profit due to lower revenue¥-1,464 million
- Decrease in gross profit due to a 0.2-percentage-point decline in the gross profit margin¥-123 million
- Decrease due to higher personnel expenses¥-59 million
- Increase due to lower expenses¥12 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Inbound demand is expected to continue, private-sector investment trends are expected to remain favorable, and the business environment is expected to remain solid. Numerical assumptions: Not disclosed.New initiatives
- For the dedicated-facility postpartum care hotel Villa Mom in Ariake, Tokyo, responsible for the design, planning, construction, and service concept
- At the Happy Lawson Town Ikeda Fushodai store, group companies collaborated to provide one-stop services from research and planning through design and construction
- Pursuing new business models, including participating in businesses through investment and equity investment, project management, and consulting services
Key KPIsA metric the company considers important as a management benchmark.
- Orders received¥91,971 millionYear on year against the same period last year+21.1%
- Order backlog¥88,844 millionYear on year against the same period last year+38.3%
- Number of projects annually12,977 Engagements
- Annual transacting customers2,880 companies
- Revenue contribution from existing customers93.8 %
- Number of design awards received111 Engagements
Segment results
- Specialty store marketNet Sales20,156Year-on-year change in revenue-4.3Gross Profit Margin19.7
- Department store and mass retailer marketNet Sales1,959Year-on-year change in revenue7.8Gross Profit Margin26.5
- Shopping complex marketNet Sales6,769Year-on-year change in revenue-26.9Gross Profit Margin20.3
- Public relations and sales promotion marketNet Sales8,262Year-on-year change in revenue9.9Gross Profit Margin21.7
- Museum and art museum marketNet Sales4,367Year-on-year change in revenue1.4Gross Profit Margin18.7
- Leisure facility marketNet Sales14,104Year-on-year change in revenue22.7Gross Profit Margin16.8
- Exhibition and event marketNet Sales1,645Year-on-year change in revenue-84.8Gross Profit Margin25.2
- Other marketsNet Sales16,058Year-on-year change in revenue12.8Gross Profit Margin21.8
Medium-term management plan targets
Target fiscal year2028
Net Sales¥190.0 billion or more
Operating profit¥16.1 billion or more
Operating profit margin8.5% or more
Financial targets
Operating profit margin8.5% or higher (2028 target)
Market Size / Share
Display industry market size in fiscal 2025: ¥1,820 billion
Share乃村工藝社's share of the combined sales of the top 30 companies in fiscal 2025: 15.9%
Orders received and order backlog
Orders received
¥91,971 million
Year on year against the same period last year+21.1%
Order backlog
¥88,844 million
Year on year against the same period last year+38.3%
Number of stores and locations
Domestic Sites11
Overseas Locations8
Number of employees
Number of Employees2,742 people
BreakdownConsolidated: 2,154 (full-time employees); non-consolidated: 1,587 (full-time employees); total group employees, including contract employees: 2,742
Annual Dividend
¥44
BreakdownInterim: ¥22.00; year-end: ¥22.00
Payout ratio
The higher of a payout ratio of 50% or more and a DOE of 7% or more| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending February 2027 |
| Net Sales | ¥73,322 million (YoY -9.0%) |
| Operating profit | ¥5,261 million (YoY -23.7%) |
| Ordinary income | ¥5,426 million (YoY -22.8%) |
| Net income | ¥3,412 million (YoY -23.2%) |
| Gross Profit Margin | 20.1 % |
| Operating profit margin | 7.2 % |
| Selling, general and administrative expenses | ¥9,504 million |
| Results for the three months of the current quarter | Net Sales ¥37,587 million / Gross profit ¥7,614 million / Operating profit ¥2,769 million / Ordinary income ¥2,855 million / Net income ¥1,986 million |
| Full-year earnings forecast | Net Sales ¥168,000 million / Operating profit ¥13,400 million / Ordinary income ¥13,600 million / Profit attributable to owners of the parent ¥9,250 million / Dividend per share ¥44 / Earnings per share ¥82.89 |
| Segment results | Segment Specialty store market / Net Sales ¥20,156 million / Year-on-year change in revenue ¥-4.3 million / Gross Profit Margin ¥19.7 million, Segment Department store and mass retailer market / Net Sales ¥1,959 million / Year-on-year change in revenue ¥7.8 million / Gross Profit Margin ¥26.5 million, Segment Shopping complex market / Net Sales ¥6,769 million / Year-on-year change in revenue ¥-26.9 million / Gross Profit Margin ¥20.3 million, Segment Public relations and sales promotion market / Net Sales ¥8,262 million / Year-on-year change in revenue ¥9.9 million / Gross Profit Margin ¥21.7 million, Segment Museum and art museum market / Net Sales ¥4,367 million / Year-on-year change in revenue ¥1.4 million / Gross Profit Margin ¥18.7 million, Segment Leisure facility market / Net Sales ¥14,104 million / Year-on-year change in revenue ¥22.7 million / Gross Profit Margin ¥16.8 million, Segment Exhibition and event market / Net Sales ¥1,645 million / Year-on-year change in revenue ¥-84.8 million / Gross Profit Margin ¥25.2 million, Segment Other markets / Net Sales ¥16,058 million / Year-on-year change in revenue ¥12.8 million / Gross Profit Margin ¥21.8 million |
| Breakdown of Factors Affecting the Change | Factors Decrease in gross profit due to lower revenue / Amount ¥-1,464 million, Factors Decrease in gross profit due to a 0.2-percentage-point decline in the gross profit margin / Amount ¥-123 million, Factors Decrease due to higher personnel expenses / Amount ¥-59 million, Factors Increase due to lower expenses / Amount ¥12 million |
| Key KPIs | Indicator name Orders received / Value ¥91,971 million / Year on year against the same period last year ¥21.1 million, Indicator name Order backlog / Value ¥88,844 million / Year on year against the same period last year ¥38.3 million, Indicator name Number of projects annually / Value 12,977 Engagements, Indicator name Annual transacting customers / Value 2,880 companies, Indicator name Revenue contribution from existing customers / Value 93.8 %, Indicator name Number of design awards received / Value 111 Engagements |
| Number of stores and locations | Domestic Sites 11 / Overseas Locations 8 / Number of store openings and closures during the period Not disclosed |
| Number of employees | Number of Employees 2,742 people / Breakdown Consolidated: 2,154 (full-time employees); non-consolidated: 1,587 (full-time employees); total group employees, including contract employees: 2,742 / Changes during the period and hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Inbound demand is expected to continue, private-sector investment trends are expected to remain favorable, and the business environment is expected to remain solid. Numerical assumptions: Not disclosed. |
| Medium-term management plan targets | Target fiscal year 2028 / Net Sales ¥190.0 billion or more / Operating profit ¥16.1 billion or more / Operating profit margin 8.5% or more |
| Financial targets | Operating profit margin 8.5% or higher (2028 target) |
| Annual Dividend | ¥44 |
| Payout ratio | The higher of a payout ratio of 50% or more and a DOE of 7% or more |
| Orders received and order backlog | Orders received ¥91,971 million / Order backlog ¥88,844 million |
| Market Size / Share | Market Size Display industry market size in fiscal 2025: ¥1,820 billion / Share 乃村工藝社's share of the combined sales of the top 30 companies in fiscal 2025: 15.9% |
| New initiatives | For the dedicated-facility postpartum care hotel Villa Mom in Ariake, Tokyo, responsible for the design, planning, construction, and service concept, At the Happy Lawson Town Ikeda Fushodai store, group companies collaborated to provide one-stop services from research and planning through design and construction, Pursuing new business models, including participating in businesses through investment and equity investment, project management, and consulting services |
Items this document does not state (7)
Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresKey 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.Revenue declined due to the reaction to the completion of Osaka-Kansai Expo-related projects and large-scale urban redevelopment projects in the same period of the previous year. The decline in gross profit resulting from lower revenue and an increase in selling, general and administrative expenses put downward pressure on operating profit. Meanwhile, initiatives to improve profitability kept the gross profit margin at a high level.
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.
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