Synchro Food (3963) Q4 2026 earnings summary

Executive summary

• Full-year revenue rose 40.2% year-over-year to ¥5,541–5,541.8 million, driven by the consolidation of Ideal Inc. and Horizon 14 Co., Ltd., and strong Q4 M&A brokerage deals, reaching 99.0% of the forecast.

• Operating profit declined 39.1% year-over-year to ¥668–668.5 million due to a slowdown in recruitment advertising, one-time expenses, and goodwill amortization, achieving 97.6% of the forecast.

• Profit attributable to owners dropped 59.1% to ¥269–269.9 million.

• Strategic focus on shifting job advertising to in-house apps, expanding the user base, and leveraging AI for productivity improvements.

• The addition of the Property Management segment significantly impacted the business structure and financials.

Financial highlights

• Q4 revenue was ¥1,923 million, up 86.9% year-over-year and 8.9% sequentially; operating profit was ¥191 million, down 25.5% year-over-year but up 65.7% sequentially.

• Full-year gross profit increased 8.1% to ¥3,500 million; net income attributable to owners was ¥269 million, down 59.1% year-over-year.

• Operating margin for the year was 12.1%, down from 27.8% year-over-year; recurring profit was ¥614 million, down 43.5% year-over-year.

• ROE for the year was 5.4%, down from 13.7% year-over-year.

• Basic earnings per share decreased to ¥9.61 from ¥24.01 year-over-year.

Outlook and guidance

• FY2026 revenue forecast revised downward to ¥7,500 million (down ¥750 million from previous guidance), with operating profit expected at ¥332 million, reflecting market headwinds in recruitment advertising.

• For the fiscal year ending March 31, 2027, net sales are forecast at ¥7,500 million (+35.3% YoY), operating profit at ¥332 million (-50.3% YoY), and profit attributable to owners at ¥141 million (-47.6% YoY).

• FY2027 designated as a period for business portfolio optimization and resource reallocation; new targets for FY2028 to be announced after further review.