NANYO (7417) investor relations material

Executive summary

• Revenue increased 0.8% year-over-year to ¥36,815 million, while operating profit declined 1.5% to ¥2,809 million due to business foundation strengthening measures.

• Net profit attributable to shareholders rose 15.6% year-over-year to ¥2,356 million, driven by a one-time negative goodwill gain from a subsidiary acquisition and gains from the sale of investment securities.

• The business environment showed moderate recovery in domestic consumption, but was challenged by global economic uncertainties, geopolitical risks, and labor shortages.

Financial highlights

• Revenue for FY2026/3 was ¥36,815 million, up 0.8% year-over-year.

• Operating profit was ¥2,809 million, down 1.5% year-over-year.

• Net profit attributable to shareholders was ¥2,356 million, up 15.6% year-over-year, driven by one-time gains.

• EPS rose to ¥190.00 from ¥163.09 in the previous year.

• Dividend per share increased to ¥68 (from ¥58), with a payout ratio of 35.8%.

Outlook and guidance

• FY2027/3 forecast: revenue ¥40,000 million (+8.6%), operating profit ¥3,000 million (+6.8%), net profit ¥2,250 million (−4.5%) due to absence of negative goodwill.

• Dividend payout ratio to be maintained at around 35%, with a planned dividend of ¥65 per share.

• The company anticipates continued economic recovery but remains cautious due to global risks, commodity price volatility, and labor shortages.