CREEK & RIVER (4763) investor relations material

Executive summary

• Achieved record-high Q1 sales and profits, with net sales rising 23.1% year-over-year to ¥17,034 million, operating profit up 52% to ¥2,204 million, and profit attributable to owners up 57% to ¥1,486 million, driven by growth in core businesses and significant contribution from the Takahashi Bookstore Group.

• Comprehensive income increased 64.1% year-over-year to ¥1,493 million.

• All major business categories except Professional Agency and Broadcasting & Video saw increased revenue and profit year-over-year.

• The company finalized accounting treatment for the Takahashi Bookstore Group business combination in Q1.

Financial highlights

• Gross profit margin improved by 3.0 points to 41.6%, with gross profit at ¥7,094 million; operating profit margin increased by 2.4 points to 12.9%.

• Ordinary profit reached ¥2,192 million, up 52.4% year-over-year.

• Basic and diluted EPS for the quarter were ¥70.18, up from ¥44.70 in the prior year.

• Net profit attributable to owners was ¥1,486 million, up 57% year-over-year.

• Takahashi Bookstore Group contributed significantly to sales and profit growth, especially in planners and calendars.

Outlook and guidance

• Full-year sales forecast revised upward to ¥66,000 million (+¥500 million), up 7.5% year-over-year; operating profit forecast raised to ¥5,450 million (+¥200 million), with profit attributable to owners projected at ¥3,450 million (-16.0%).

• Year-end dividend increased by ¥1 to ¥51 per share, targeting a 30% payout ratio.

• Plans to increase revenue and profits in all categories for FY ending Feb 2027, aiming to absorb investment costs.

• Earnings forecasts and dividend guidance have been revised.