TOPPAN (7911) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 15% year-on-year to JPY 457.3 billion, with record high profit and consolidated results exceeding plan.

• Non-GAAP operating profit increased 57% to JPY 25.4 billion; non-GAAP net profit surged 175% to JPY 25.7 billion, aided by reduced tax burden from integration of three operating companies.

• Profit attributable to owners of parent rose 131.3% to JPY 21.6 billion.

• Major merger of subsidiaries and transition to a business unit structure enhanced competitiveness and synergy.

Financial highlights

• EBITDA increased 33.6% year-on-year to JPY 43.1 billion.

• Gross margin improved by 0.2 percentage points year-on-year to 24.2%.

• SG&A expenses rose by JPY 9 billion due to new entities, but SG&A ratio improved by 0.8 percentage points.

• Basic earnings per share for the quarter was JPY 76.89, more than double the prior year.

• Comprehensive income reached JPY 60.7 billion, a significant increase from JPY 2.0 billion a year earlier.

Outlook and guidance

• Full-year FY2026 guidance remains unchanged: net sales projected at JPY 1,925.0 billion (+6.6% YoY), non-GAAP operating profit at JPY 101.0 billion (+7.2% YoY), and net profit at JPY 80.0 billion (+19.2% YoY).

• No changes have been made to previously announced forecasts, with continued uncertainty regarding stabilization in the Middle East.

• Segment forecasts: Information Solutions and Living & Industry expected to grow, while Electronics is projected to decline due to structural changes.