Shimojima Co., Ltd. (7482): FY2025 Results Summary — Higher Sales and Profit With Record-High Net Sales

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Shimojima Co., Ltd. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recently completed fiscal year as FY2025; the source materials label it “the fiscal year ended March 2026,” and those labels are retained in the text and tables below.

For the fiscal year ended March 2026 (April 1, 2025 to March 31, 2026), Shimojima Co., Ltd. posted consolidated net sales of 64,829 million yen (+6.8% year on year), operating profit of 3,456 million yen (+15.7%), ordinary profit of 3,869 million yen (+17.1%), and profit attributable to owners of parent of 2,738 million yen (+31.1%), for higher sales and higher profit. Net sales set a record high, and expanding demand for environmentally conscious products together with cost restraint achieved through procurement efforts supported profit growth.

Consolidated Results (FY Ended March 2026, Actual)

Net sales increased on expanding demand for environmentally conscious products, on event and inbound demand at the store sales division, and on demand related to the Osaka-Kansai Expo. The gross profit margin improved to 32.6% (+0.6pt year on year), with cost restraint achieved through procurement efforts contributing. Meanwhile, selling, general and administrative expenses rose to 17,648 million yen (+7.3% year on year), with distribution costs up 11.1% and personnel expenses up 9.4% (average base pay increase rate of 5.0%). As a result, operating profit increased by 470 million yen and ordinary profit by 565 million yen, while profit attributable to owners of parent increased by 650 million yen, partly as a reaction to the temporary reduction in the corporate tax burden in the previous fiscal year.

Item (million yen)	FY ended March 2025 (Full Year)	FY ended March 2026 (Full Year)	Change	YoY
Net sales	60,680	64,829	4,149	+6.8%
Gross profit	19,436	21,105	1,669	+8.6%
Total SG&A expenses	16,449	17,648	1,199	+7.3%
Operating profit	2,986	3,456	470	+15.7%
Ordinary profit	3,303	3,869	565	+17.1%
Profit attributable to owners of parent	2,088	2,738	650	+31.1%

Results by Sales Channel and by Product Segment

By sales channel, the Business Sales Division reached 47,100 million yen (+10.3% year on year, 72.7% of net sales), growing on expanding demand for environmentally conscious products in step with carbon neutrality and a recycling-oriented society. The Store Sales Division was 11,592 million yen (+1.4%, 17.9% of net sales), supported by event and inbound demand and by demand related to the Osaka-Kansai Expo. The Mail-Order (EC) Division was 6,136 million yen (-6.2%, 9.5% of net sales); although the “Shimojima Online Shop” mail-order site itself expanded to 1,720,000 product SKUs listed and 1,010,000 registered member IDs, sales declined because Global Brand Co., Ltd. was excluded from the scope of consolidation. By product segment, the Paper Products business grew on the shift away from plastics and on demand for food bags, the Chemical Products and Packaging Materials business grew on the development of new environmentally conscious food packaging materials, and the Store Supplies business grew on sales centered on hygiene products such as paper towels and gloves; all three posted higher sales.

Business segment	Net sales (current period)	Change vs previous year	YoY
Paper Products business	10,634 million yen	+637 million yen	+6.4%
Chemical Products and Packaging Materials business	39,639 million yen	+3,145 million yen	+8.6%
Store Supplies business	14,555 million yen	+367 million yen	+2.6%

Full-Year Forecast (FY Ending March 2027)

The consolidated forecast for the fiscal year ending March 2027 calls for net sales of 66,000 million yen (+1.8% year on year), operating profit of 3,700 million yen (+7.0%), ordinary profit of 4,000 million yen (+3.4%), and profit attributable to owners of parent of 2,600 million yen (-5.1%). Operating profit and ordinary profit are expected to rise on growth in the core business, while profit attributable to owners of parent is expected to decline as a reaction to the temporary reduction in the corporate tax burden in the previous fiscal year. The materials also cite, as an industry trend, the impact on results of the deteriorating situation in the Middle East (including the risk of a closure of the Strait of Hormuz stemming from attacks on Iran by Israel and the United States), and state that price revisions have already been implemented for some products such as stretch film and nitrile gloves.

Item (million yen)	FY ended March 2026 (Actual)	FY ending March 2027 (Forecast)	Change	YoY
Net sales	64,829	66,000	1,171	+1.8%
Operating profit	3,456	3,700	244	+7.0%
Ordinary profit	3,869	4,000	131	+3.4%
Profit attributable to owners of parent	2,738	2,600	-138	-5.1%

Shareholder Returns

The dividend has been raised for three consecutive fiscal years. For the fiscal year ended March 2025 (actual), the interim dividend was 27 yen and the year-end dividend 27 yen, for an annual dividend of 54 yen (payout ratio 60.4%, DOE 3.1%). For the fiscal year ended March 2026 (shown in the materials as a forecast), the interim dividend is 27 yen and the year-end dividend 32 yen, for an annual dividend of 59 yen (payout ratio 50.4%, DOE 3.8%); for the fiscal year ending March 2027 (forecast), the interim dividend is 29 yen and the year-end dividend 30 yen, for an annual dividend of 59 yen (payout ratio 53.1%). Consolidated dividend on equity (DOE) is defined as (total annual dividends / consolidated shareholders’ equity) x 100. In May 2025 the company announced a change to its dividend policy under which it adopted DOE.

Fiscal year	Interim	Year-end	Annual	Payout ratio	DOE
FY ended March 2024 (Actual)	11 yen	40 yen	51 yen	50.1%	2.9%
FY ended March 2025 (Actual)	27 yen	27 yen	54 yen	60.4%	3.1%
FY ended March 2026 (Forecast)	27 yen	32 yen	59 yen	50.4%	3.8%
FY ending March 2027 (Forecast)	29 yen	30 yen	59 yen	53.1%	–

Medium-Term Management Plan / Topics

Under the First Medium-Term Management Plan (fiscal years ended March 2022 through March 2026), net sales came in at 64,829 million yen against a revised plan of 65,000 million yen; operating profit was 3,456 million yen against an initial plan of 1,950 million yen and a revised plan of 3,575 million yen; and the operating profit margin was 5.3% against an initial plan of 3.0% and a revised plan of 5.5%. The payout ratio was 50.4% against an initial plan of 30% and a revised plan of 50%, and ROA (ordinary profit to total assets) was 8.9% against an initial plan of 5.0% and a revised plan of 8.5%, for which the company’s internal assessment was “◎.” The “1 Million x 1 Million Project” (number of products in SKUs x number of members in IDs) expanded to 1,720,000 product SKUs listed and 1,010,000 registered member IDs, exceeding the targets of 1,000,000 SKUs and 1,000,000 IDs. From the fiscal year ending March 2027, the Second Medium-Term Management Plan “Dream Action 2030” (fiscal years ending March 2027 through March 2030) begins, setting targets for the fiscal year ending March 2030 of net sales of 80,000 million yen (CAGR 5.4%), operating profit of 5,200 million yen (margin 6.5%), and ROE of 8.0%, with a long-term vision of net sales of 150,000 million yen (with M&A in view), operating profit of 15,000 million yen or more (margin of 10% or more), and ROE of 10% or more. Topics cited include the acquisition of Okura Sangyo Co., Ltd. as a wholly owned subsidiary in January 2025; a planned transition to a company with an audit and supervisory committee following approval at the 65th Annual General Meeting of Shareholders scheduled for June 25, 2026; and the opening of the Shimojima Showroom at the Asakusabashi main store in October 2025.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.