Cross Marketing Group (3675) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net sales reached a record ¥9,620m, up 43.4% YoY; operating income fell 42.1% to ¥166m and net loss attributable to owners of parent was ¥29m.

• Digital Marketing and overseas research supported sales growth; FY2027 guidance remains unchanged.

Financial highlights

• Net sales were ¥9,620m, up 43.4% YoY; gross profit was ¥2.75B, up 11%, and SG&A was ¥2.59B, up 18%.

• Operating income was ¥166m, down 42.1%; ordinary income was ¥117m, down 59.6%; net loss attributable to owners of parent was ¥29m, versus ¥122m net income a year earlier.

• Basic EPS was -¥1.56 versus ¥6.29; comprehensive loss was ¥58m versus ¥156m comprehensive income in the prior-year quarter.

• EBITDA was ¥0.33B, down 24%; gross margin was 28.6%, down 8.2 percentage points, and operating margin was 1.7%, down 2.5 points.

• EBITDA margin was 3.4%, down 3.0 points YoY.

Outlook and guidance

• FY2027 forecast unchanged: net sales ¥40,000m (+20.5%), operating income ¥2,500m (+39.7%), and ordinary income ¥2,500m (+38.2%).

• Forecast net income attributable to owners of parent is ¥1,300m (+63.4%); basic EPS is ¥67.30.

• Forecasts are based on currently available data and reasonable assumptions; actual results may differ significantly.