TOPPAN (7911) Q1 2026 earnings summary

Executive summary

• Q1 net sales reached JPY 397.5 billion, a 1.3% decrease year-over-year, with overall performance in line with forecasts.

• Non-GAAP operating profit rose 15.3% to JPY 16.1 billion, and non-GAAP profit attributable to owners increased 16.8% to JPY 9.3 billion, excluding special gains.

• Operating profit rose 20.1% to JPY 13.5 billion, while profit attributable to owners of parent fell 4.8% to JPY 9.3 billion.

• The business environment was marked by geopolitical risks, inflation, FX volatility, and growth in sustainability and digital/semiconductor markets.

Financial highlights

• Gross profit margin improved by 1 percentage point year-over-year to 24%, driven by high-value-added products and structural reforms.

• EBITDA increased 2.6% year-over-year to JPY 32.3 billion; gross profit improved to JPY 95.3 billion.

• Comprehensive income dropped sharply to JPY 2.0 billion from JPY 66.8 billion year-over-year, mainly due to negative FX translation adjustments.

• SG&A ratio increased by 0.4 percentage points due to higher payroll and freight costs.

• Non-operating income dropped from JPY 5.3 billion to JPY 1.4 billion year-over-year, mainly due to higher interest expenses and lower FX gains.

Outlook and guidance

• No revisions to the full-year forecast; exchange rate assumption remains at JPY 140 per dollar.

• Full-year net sales forecast at JPY 1,880.0 billion (+9.3%), operating profit at JPY 92.0 billion (+8.2%), and profit attributable to owners of parent at JPY 65.0 billion (−27.9%).

• No change to previously announced forecasts; actual results may differ due to market factors.

• Business transformation will continue, focusing on growth businesses and structural reforms.