CREEK & RIVER (4763) Q4 2025 earnings summary

Executive summary

• Achieved record-high net sales of ¥50,275 million for FY ending February 2025, up 1% year-over-year, but profits declined across key segments, especially in Creative (Japan) and Medical fields due to project reductions, higher costs, and structural reforms.

• Investments in AI/DX and original content development are ongoing, with segment recovery observed from Q2 onward.

• Comprehensive income for the year was ¥2,230 million, down from ¥2,697 million in the previous year.

Financial highlights

• Sales: ¥50,275 million (+1% YoY); Operating profit: ¥3,614 million (-12% YoY); Ordinary profit: ¥3,694 million (-11% YoY); Profit attributable to owners: ¥2,251 million (-15% YoY).

• Gross profit margin decreased to 36.9% from 37.4% YoY; gross profit was ¥18,572 million, nearly flat YoY.

• SG&A expenses rose 3% YoY.

• Basic earnings per share was ¥105.45, down from ¥120.84 the previous year.

• Cash and deposits increased by ¥1,338 million YoY, with cash and cash equivalents at year-end rising to ¥9,019 million.

Outlook and guidance

• FY Feb 2026 sales target: ¥60,000 million (+19% YoY); Operating profit: ¥5,000 million (+38% YoY); Ordinary profit: ¥5,000 million (+35% YoY); Profit attributable to owners: ¥3,200 million (+42% YoY).

• Dividend per share forecasted at ¥45, up ¥4 YoY, with a payout ratio of 30%–38.9%.

• Takahashi Shoten acquisition to contribute ¥4,900 million in sales and ¥500 million in operating profit (full year impact).