SHIMOJIMA CO., LTD. — Second Medium-Term Management Plan, “Dream Action 2030,” Gets Off to a Smooth Start Toward Achieving Its Long-Term Vision (FISCO)

For the first quarter of the fiscal year ending March 2027, シモジマ reported net sales of ¥18.446 billion, up 21.6% year on year, operating profit of ¥1.640 billion, up 149.2%, ordinary profit of ¥1.718 billion, up 121.9%, and net income attributable to owners of the parent of ¥1.146 billion, up 119.8%. Customers brought forward their purchases amid concerns about the impact of the situation in the Middle East, while the effects of price increases took hold, resulting in both higher sales and expanded profits.

On the profit side, sales of original products, including environmentally friendly products, were strong, and the gross profit margin improved by 1.05 points year on year to 33.58%. The company continued passing through higher costs in response to the weaker yen and rising raw material prices, while absorbing increases in logistics and personnel expenses through the effect of higher sales.

By sales channel, expanded sales activities and orders for made-to-order products in the sales division, as well as membership growth through the operation of its own e-commerce site, contributed to results. The retail sales division recorded a substantial increase in consolidated net sales through new customer development, deeper engagement with existing customers and the maintenance of supply capacity. In e-commerce, the シモジマ Online Shop remained solid, while the シモジマ Mall experienced some stockouts and delays in product launches.

By product segment, demand for paper bags and wrapping paper in the paper products business remained firm, with sales rising 11.4% to ¥2.714 billion. The chemicals and packaging materials business performed well overall, with sales increasing 26.0% to ¥11.728 billion. Sales in the store supplies business rose 17.1% to ¥4.002 billion, driven by increased demand for products such as nitrile gloves.

For the fiscal year ending March 2027, the company forecasts net sales of ¥66.000 billion, operating profit of ¥3.700 billion, ordinary profit of ¥4.000 billion and net income attributable to owners of the parent of ¥2.600 billion. The company expects to maintain its trend of higher sales and profits despite the impact of the situation in the Middle East and higher tariffs. Dream Action 2030 sets long-term targets of net sales of ¥150 billion, operating profit of at least ¥15 billion and ROE of at least 10%, while targeting net sales of ¥80 billion, operating profit of ¥5.2 billion and ROE of 8% in fiscal 2030, its final year.