| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥648.3B | ¥606.8B | +6.8% |
| Operating Income | ¥34.6B | ¥29.9B | +15.7% |
| Equity-method Investment Income (Loss) | - | - | - |
| Ordinary Income | ¥38.7B | ¥33.0B | +17.1% |
| Net Income | ¥24.9B | ¥19.0B | +31.3% |
| ROE | 6.7% | 5.4% | - |
For the full year ended March 2026, Revenue was ¥648.3B (YoY +¥41.5B +6.8%), Operating Income was ¥34.6B (YoY +¥4.7B +15.7%), Ordinary Income was ¥38.7B (YoY +¥5.7B +17.1%), and Net income attributable to owners of parent was ¥27.4B (YoY +¥6.5B +31.1%), achieving double-digit profit growth across all profit lines. Gross margin improved to 32.6% from 32.0% a year earlier (+56bp), supported by price revisions and product-mix optimization. SG&A increased to ¥176.5B (+¥12.0B) but was managed below the sales growth rate, improving Operating margin to 5.3% (prior year 4.9%) by +41bp. The core Chemicals & Packaging Materials segment accounted for 61.2% of Revenue and 68% of Operating Income, with segment margin improving to 10.0% (prior year 8.4%) +1.6pt. Paper Products maintained a margin of 11.2% (prior year 11.2%), and Store Supplies recovered to 4.2% (prior year 3.7%), reflecting profitability improvements across all segments. Operating Cash Flow (OCF) was ¥38.5B (YoY +317.0%)—1.4x Net income—demonstrating strong cash backing of profits. Free Cash Flow (FCF) generated ¥16.7B, comfortably covering total dividends of ¥12.7B and capital expenditures of ¥7.2B. On the balance sheet, cash and deposits stood at ¥92.7B, interest-bearing debt was ¥0.5B (Debt/EBITDA 0.01x), and Equity Ratio was 81.6%, indicating extremely sound finances. Dividends were ¥59 per share (Payout Ratio 51%), a sustainable level.
Revenue: Revenue increased 6.8% YoY to ¥648.3B, led by Chemicals & Packaging Materials up 8.6% YoY, Paper Products +6.4%, and Store Supplies +2.6%, achieving revenue growth in all segments. Chemicals & Packaging Materials amounted to ¥396.7B (61.2% of total), supported by expanded demand for polyethylene and PP bags and penetration of price increases. Paper Products were ¥106.3B (16.4%) with stable orders for paper bags and wrapping paper. Store Supplies were ¥145.6B (22.5%) with modest increases for retail and foodservice materials. Cost of sales was ¥437.2B (prior year ¥412.4B); increases in raw material prices were covered by price pass-through, improving gross margin to 32.6% (prior year 32.0%) +56bp.
Profitability: Gross profit rose to ¥211.1B (prior year ¥194.4B) (+¥16.7B). SG&A increased to ¥176.5B (prior year ¥164.5B) (+¥12.0B) but was controlled below the sales growth rate, resulting in Operating Income of ¥34.6B (prior year ¥29.9B) +15.7% and Operating margin improvement to 5.3% (prior year 4.9%) +41bp. Non-operating income of ¥4.8B included ¥1.7B in real estate rental income and foreign exchange gains; non-operating expenses were ¥0.7B (interest expense ¥0.0B, forex loss ¥0.1B) and immaterial. Ordinary Income rose to ¥38.7B (prior year ¥33.0B) +17.1%, with Ordinary margin improving to 5.97% (prior year 5.44%) +53bp. Extraordinary items saw the prior-year impairment loss of ¥3.4B drop to zero, eliminating a one-off loss. After corporate taxes of ¥11.3B, Net income attributable to owners of parent was ¥27.4B (prior year ¥20.9B) +31.1%, and Net margin improved to 4.23% (prior year 3.44%) +79bp. In conclusion, revenue and profit increased due to across-the-board segment growth, price pass-through, and cost containment improving margins.
Chemicals & Packaging Materials: Revenue ¥396.7B (YoY +8.6%), Operating Income ¥39.6B (YoY +29.4%), margin 10.0% (prior year 8.4%) +1.6pt, serving as the main profit driver. Paper Products: Revenue ¥106.3B (YoY +6.4%), Operating Income ¥12.0B (YoY +7.2%), margin maintained at 11.2%, preserving its status as a stable, high-margin segment. Store Supplies: Revenue ¥145.6B (YoY +2.6%), Operating Income ¥6.1B (YoY +14.9%), margin 4.2% (prior year 3.7%) +0.5pt, supported by resilient retail and foodservice demand and improved profitability. Others (Logistics): Revenue ¥15.5B (YoY +6.7%), Operating Income ¥0.7B (YoY -8.5%), margin 4.2%—somewhat weak but with limited impact on the overall results. All segments achieved revenue growth and margin improvement, expanding the earnings base.
Profitability: Operating margin improved to 5.3% (prior year 4.9%) +41bp, driven by gross margin +56bp and SG&A control. ROE was 6.7% (XBRL figure), explained by Net margin 4.2% × Total Asset Turnover 1.43 × Financial leverage 1.23; improvement in Net margin (3.4% → 4.2%, +79bp) was the main driver of higher ROE. Net margin improvement was due to price pass-through and mix optimization improving gross profit, restrained SG&A growth, and elimination of the prior-year impairment loss of ¥3.4B. Cash Quality: OCF of ¥38.5B is 1.54x Net income of ¥24.9B, indicating strong cash backing. OCF/EBITDA (OCF ¥38.5B ÷ EBITDA ¥44.2B) was 0.87x, slightly below the 0.9x benchmark; accounts receivable increase -¥10.0B weighed on the ratio, while inventory decrease +¥2.6B and accounts payable increase +¥2.9B supported cash flow. The accrual ratio ((Net income ¥24.9B - OCF ¥38.5B) ÷ Total assets ¥453.1B) = -3.0% is negative, indicating high profit quality. Investment Efficiency: Total Asset Turnover was 1.43x (Revenue ¥648.3B ÷ average total assets ¥454.7B), slightly down from 1.45x, with AR increase and higher cash balances diluting asset efficiency. CAPEX was ¥7.2B, 0.76x depreciation ¥9.5B—maintaining renewal levels; intangible asset acquisition ¥7.2B indicates progress in digital/system investments. Financial Soundness: Equity Ratio was 81.6% and interest-bearing debt totaled ¥0.5B (Debt/EBITDA 0.01x), effectively debt-free. Interest coverage is extremely high (Operating Income ¥34.6B ÷ interest expense ¥0.0B, not measurable). Current ratio was 351.8% and quick ratio 276.7%, indicating no short-term liquidity concerns and top-tier financial resilience in the industry.
OCF was ¥38.5B (prior year ¥9.2B), a YoY increase of +317.0%, and is 1.54x Net income ¥24.9B, indicating high quality. OCF subtotal (pre-tax profit + non-cash expenses - interest/dividend adjustments) was ¥46.2B. Changes in working capital were a headwind with AR increase -¥10.0B, but inventory decrease +¥2.6B and AP increase +¥2.9B provided support, and after corporate tax payments -¥8.0B, ¥38.5B was generated. Investing CF was -¥21.8B, driven by CAPEX -¥7.2B and intangible asset acquisitions -¥7.2B, partly offset by long-term loan recoveries ¥0.4B and other +¥1.9B. FCF was OCF ¥38.5B + Investing CF -¥21.8B = ¥16.7B. Coverage of dividends paid ¥12.7B and CAPEX ¥7.2B (total ¥19.9B) is (FCF ¥16.7B + term deposit adjustment)/¥19.9B ≒ 0.84x, broadly coverable. Financing CF was -¥14.6B (dividends paid -¥12.7B, lease liabilities repayment -¥1.4B, no treasury stock acquisition), funded from internal reserves and cash drawdown. Ending cash and deposits increased to ¥92.7B (prior year ¥80.9B) +¥11.8B; after adjusting for changes in time deposits (placements -¥40.3B, withdrawals +¥30.6B), net cash increase was ¥2.1B. The significant YoY increase in OCF reflects profit growth and improved working capital management, confirming enhanced cash-generating capability.
With Ordinary Income of ¥38.7B and virtually zero extraordinary gains/losses (profit ¥0.0B, loss ¥0.0B), Ordinary Income effectively equals pre-tax income (¥38.7B), and one-off items are minimal. The prior-year extraordinary loss of ¥3.4B (impairment) did not recur, improving the pre-tax profit profile and indicating high earnings persistence. Non-operating income of ¥4.8B includes stable real estate rental income ¥1.7B, and other non-operating income ¥1.8B appears largely recurring. Non-operating expenses ¥0.7B include forex loss ¥0.1B but are immaterial; interest expense is ¥0.0B, and interest-bearing debt burden is effectively zero. The difference between comprehensive income ¥29.9B and Net income ¥24.9B (+¥5.0B) stems from valuation adjustments: unrealized gains/losses on securities +¥0.2B, deferred hedge gains/losses +¥2.0B, and retirement benefit adjustments +¥0.3B, centered on valuation adjustments with limited impact on operating earnings. OCF ¥38.5B being 1.54x Net income ¥24.9B and an accrual ratio of -3.0% (negative) confirm strong cash backing of profits, indicating high quality of earnings.
Full-year forecast: Revenue ¥660.0B (vs. current year +1.8%), Operating Income ¥37.0B (vs. current year +7.0%), Ordinary Income ¥40.0B (vs. current year +3.4%), EPS forecast ¥111.16 (vs. current year actual ¥117.12, -5.1%). With current-year results Revenue ¥648.3B and Operating Income ¥34.6B, the full-year forecast represents Revenue -1.8% shortfall and Operating Income -6.5% shortfall versus initial guidance, but a substantial YoY profit increase was secured. Next fiscal year Revenue growth of +1.8% decelerates from this year’s +6.8%, but Operating margin is expected to improve to 37.0B ÷ 660.0B = 5.61% from 5.33% this year (+28bp), reflecting continued profitability improvement. The Ordinary Income increase +3.4% trails Operating Income growth +7.0%, assumedly due to limited scope for improvement in non-operating items. EPS forecast ¥111.16 declines from ¥117.12 this year, but dividend forecast ¥29 (annual) corresponds to Payout Ratio ~52%, a sustainable level. The full-year forecast reflects a cautious stance: modest revenue growth but earnings gain from margin improvement, assuming continued price pass-through and cost management.
Annual dividend is ¥59 (interim ¥27, year-end ¥32); year-end dividend was increased from initial forecast ¥27 to ¥32. With Net income attributable to owners of parent ¥27.4B and weighted average shares outstanding 23,381 thousand shares, EPS of ¥117.12 vs. dividend ¥59 implies Payout Ratio of 50.4%. Total dividends amounted to ¥12.7B (interim ¥6.3B + year-end ¥7.5B). FCF ¥16.7B provides FCF coverage of dividends: 16.7 ÷ 12.7 = 1.31x, indicating ample coverage; cash and deposits ¥92.7B provide liquidity, supporting dividend sustainability. No share buybacks were conducted (¥0 acquisition), so total shareholder return is dividends only and Total Return Ratio is also 50.4%. Next fiscal year dividend forecast is annual ¥29 (possibly on a semi-annual basis, per XBRL), implying a reduction from this year’s ¥59. However, given cash generation and low leverage, there is sufficient room to sustain dividend policy. DOE (Dividend / Equity) is ¥12.7B ÷ ¥368.8B (prior year-end equity) ≒ 3.4%, confirming a stable return stance.
Segment concentration risk: Chemicals & Packaging Materials accounts for 61.2% of Revenue and 68% of Operating Income; fluctuations in raw material prices (resins/plastics) and environmental regulations (plastic reduction requirements) directly affect overall performance. Despite YoY revenue +8.6% and margin +1.6pt, rapid deterioration in profitability could occur if crude oil spikes or regulations tighten, delaying price pass-through or incurring development costs for alternatives. High dependence on the core segment limits diversification benefits.
Working capital management risk: Accounts receivable increased to ¥78.1B (prior year ¥69.6B) (+¥8.5B), causing a -¥10.0B cash outflow from OCF. AR days are approximately 44 days (¥78.1B ÷ ¥648.3B × 365) extending from about 42 days in the prior year, and longer collection cycles raise credit risk and reduce capital efficiency. AR growth +12.2% exceeds revenue growth +6.8%, making strengthening receivables management urgent. Inventory decreased to ¥54.3B (prior year ¥57.4B) -¥3.1B, improving inventory efficiency, but AR expansion pressures overall working capital.
Fixed-cost increase risk: SG&A rose to ¥176.5B (prior year ¥164.5B) +¥12.0B (+7.3%), slightly outpacing sales growth +6.8%. Continued inflationary pressure on personnel and logistics costs may drive further fixed-cost increases next year. Although Operating margin improved +41bp, slower revenue growth (next year forecast +1.8%) could reverse operating leverage and compress margins. Intangible asset investment (acquisition ¥7.2B, balance increased to ¥20.1B +¥11.3B) aims to strengthen medium-term earnings, but delayed realization of benefits could result in depreciation/amortization burden preceding earnings improvements, pressuring profits.
Revenueability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating margin | 5.3% | 3.4% (1.4%–5.0%) | +2.0pt |
| Net margin | 3.8% | 2.3% (1.0%–4.6%) | +1.6pt |
Operating margin 5.3% exceeds the industry median 3.4% by +2.0pt; Net margin 3.8% also exceeds the median 2.3% by +1.6pt. Profitability is at the upper end within the wholesale industry, reflecting clear benefits from gross margin improvement and cost control in industry comparisons.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | 6.8% | 5.9% (0.4%–10.7%) | +1.0pt |
Revenue growth 6.8% is +1.0pt above the industry median 5.9%, indicating solid growth. It does not reach the IQR upper bound 10.7% but maintains an above-median growth pace.
※ Source: Company aggregation
Structural improvement in profitability via price penetration and cost control continued, with Operating margin improving to 5.3% (prior year 4.9%) +41bp and a further +28bp improvement expected next year, indicating an established uptrend in margins. The core Chemicals & Packaging Materials segment improved margin to 10.0% +1.6pt, showing realized effects of price pass-through and product-mix optimization. Gross margin +56bp and SG&A management together strengthened the earnings base, and the elimination of impairment losses also supported margin expansion.
Extremely healthy financial position and cash generation support sustainability of shareholder returns. OCF ¥38.5B is 1.54x Net income ¥24.9B, FCF ¥16.7B comfortably covers dividends ¥12.7B, and cash & deposits ¥92.7B, interest-bearing debt ¥0.5B (Debt/EBITDA 0.01x), and Equity Ratio 81.6% indicate minimal financial risk. Payout Ratio 50.4% is a sustainable return level. Modest earnings growth and stable dividends are expected next year.
Segment concentration and working capital management are monitoring points. Chemicals & Packaging Materials accounts for 61.2% of Revenue and is highly sensitive to raw material markets and environmental regulation. AR increased +12.2% YoY and collection cycles are lengthening, which could impair working capital efficiency and pressure liquidity and ROE. Intangible asset investment +¥11.3B is intended to strengthen mid-term earnings, but early realization of benefits is key.
This report is an AI-generated financial analysis document produced by analyzing XBRL earnings release data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company from public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.