TOMY Company (7867): FY2025 Results Summary — Record Net Sales, Lower Profits on Growth Investment

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

TOMY Company, Ltd. (TSE: 7867) reported results for Fiscal Year 2025, the fiscal year ended March 31, 2026 (April 1, 2025-March 31, 2026). Net sales achieved a record high of ¥270.4 billion, but operating profit of ¥24.2 billion fell below the previous year’s level. The company attributes the profit decline in part to increases in strategic expenses aimed at future growth, such as the building of a platform for globalization, and investments in visual content and human resources. For the fiscal year ending March 31, 2027, TOMY is forecasting record highs for both net sales (¥285 billion) and operating profit (¥26 billion).

Consolidated Results (Full-Year Actual)

Net sales hit a record high, with strong performances by KIDDY LAND and T-ARTS Company, where the company successfully captured Kidults demand. Operating profit decreased by ¥600 million year on year. Ordinary profit and EBITDA both increased, while profit attributable to owners of parent declined; in terms of extraordinary losses, TOMY International, Inc. recorded an impairment loss on goodwill of ¥4,862 million. All figures in the table below have been rounded down to the nearest ¥100 million, as presented in the materials.

Item (¥100 million)	Fiscal year ended March 31, 2026	Fiscal year ended March 31, 2025	Change
Net sales	2,704	2,502	+202
Cost of sales	1,615	1,488	+127
Gross profit	1,089	1,013	+76
Operating profit	242	248	-6
Operating profit margin	9.0%	9.9%	-0.9%
EBITDA	333	330	+3
Ordinary profit	245	240	+5
Profit attributable to owners of parent	116	163	-47
ROE	10.7%	15.8%	-5.1%

Selling, general and administrative expenses totalled ¥846 (¥100 million), up ¥82 year on year, taking the SG&A-to-sales ratio to 31.3% from 30.6%. Advertising expenses rose to 191 from 176 on investments in visual content, personnel expenses rose to 262 from 242 on business expansion, and other expenses rose to 235 from 199 on items such as organizational management and structure building in preparation for increased globalization. Amortization of goodwill and intangible assets associated with the acquisition of TOMY International (TI) was ¥1.9 billion for the period under review, against ¥2.2 billion for the previous fiscal year. The dollar conversion rate was ¥150.77 during the period under review and ¥152.57 during the same period of the previous fiscal year.

Segment Results

By segment, Japan drove the increase in net sales. In Asia, while sales of TOMICA and T-SPARK expanded, sales at the production subsidiary TOMY (Hong Kong) Ltd. declined. In the Americas, although sales of baby products declined, Fat Brain Holdings, LLC’s high-priced Air Toobz toys recorded sales growth.

Segment (¥100 million)	Metric	Fiscal year ended March 31, 2026	Fiscal year ended March 31, 2025	Change
Total	Net sales	2,704	2,502	+202
Japan	Net sales	2,262	2,110	+152
Americas	Net sales	304	311	-7
Europe	Net sales	77	71	+6
Oceania	Net sales	28	27	+1
Asia	Net sales	675	682	-7
Eliminations and corporate	Net sales	-643	-700	+57
Total	Operating profit / (loss)	242	248	-6
Japan	Operating profit / (loss)	283	276	+7
Americas	Operating profit / (loss)	5	-1	+6
Europe	Operating profit / (loss)	-3	-3	+0
Oceania	Operating profit / (loss)	1	1	+0
Asia	Operating profit / (loss)	21	26	-5
Eliminations and corporate	Operating profit / (loss)	-66	-51	-15

On a net sales by region basis, where sales are categorized into a country or region based on the customer’s location, Japan grew, driven by KIDDY LAND, T-ARTS Company, TOMICA, trading card games and others, and Asia grew on higher sales of TOMICA and BEYBLADE X together with the launch of the DETECTIVE CONAN Card Game in China. The ratio of overseas sales was 33.5%, down 1.4% from 34.9%.

Region (¥100 million)	Fiscal year ended March 31, 2026	Fiscal year ended March 31, 2025	Change
Japan	1,798	1,630	+168
North America	454	452	+2
Europe	110	124	-14
Oceania	35	34	+1
Asia	298	250	+48
Others	6	10	-4
Total	2,704	2,502	+202
Ratio of overseas sales	33.5%	34.9%	-1.4%

Financial Position and Cash Flows

Inventories stood at 252 (¥100 million) against 220 a year earlier, with Japan at 132 and overseas at 139. Long-term and short-term total borrowings fell to 7 from 41, and net cash (cash and deposits less borrowings) was 503 against 519. The equity ratio improved to 68.0% from 64.2%. Operating cash flow was 200 against 169, investing cash flow was -80 against -80, and financing cash flow was -182 against -167. Cash and cash equivalents stood at 509 against 560.

Full-Year Forecast (Fiscal Year Ending March 31, 2027)

For the fiscal year ending March 31, 2027, TOMY forecasts net sales of 2,850 (¥100 million) and operating profit of 260, which the company describes as record highs of ¥285 billion in net sales and ¥26 billion in operating profit. Profit attributable to owners of parent is forecast to rebound to 180. The company notes that the consolidated earnings forecasts are based on information currently available.

Item (¥100 million)	Fiscal year ending March 31, 2027 (Forecast)	Fiscal year ended March 31, 2026 (Actual)	Change
Net sales	2,850	2,704	+146
Operating profit	260	242	+18
Ordinary profit	260	245	+15
Profit attributable to owners of parent	180	116	+64

Shareholder Returns

Annual dividends are planned at ¥64 for the fiscal year ended March 31, 2026 and forecast at ¥70 for the fiscal year ending March 31, 2027. The company’s target management indicator for shareholder returns is a total payout ratio of 50% in principle; the actual total payout ratio for the fiscal year ended March 31, 2026 was 76.0%. Under its cash allocation policy, TOMY plans allocations to accelerate growth of ¥40-¥50 billion, funded by net cash and operating cash flow, alongside shareholder returns at a total payout ratio of 50%.

Medium- to Long-Term Management Strategy 2030

Under Medium- to Long-Term Management Strategy 2030, TOMY targets net sales of ¥300 billion and an operating profit margin of 10%. On the ¥100 million basis shown in the materials, net sales progressed from 2,083 (fiscal year ended March 31, 2024) to 2,502 and then 2,704, against a target of 3,000 for the fiscal year ending March 31, 2030; operating profit moved from 188 to 248 and then 242, against a target of 300. Against the target management indicators, the fiscal year ended March 31, 2026 delivered an operating profit margin of 9.0% (target 10%), EPS growth rate of -27.9% (target continuously 11% or more), ROE of 10.7% (target continuously 10% or more), an equity ratio of 68.0% (target approx. 50% or higher), a total payout ratio of 76.0% (50% in principle) and a price-to-book ratio (PBR) of 2.0 times (target 3 times).

Topics

The company positions Japan as the base for building a stable business platform, Asia as a market where different strategies are promoted by region, and Europe, the U.S. and Australia as the growth engine over the medium to long term. Net sales in the Asian region rose from 13,126 million yen in FY2021 to 19,305, 21,907, 25,031 and 29,863 million yen in FY2025. Initiatives highlighted include the KIDDY LAND OMOKADO store opening in April 2026, the full-scale North American launch of GACHA capsule toys and of the LICCA doll brand, expansion of Pokemon MEZASTAR from a total of 7 regions to 11 regions in FY2026, and a joint retail business in North America with SEGA FAVE CORPORATION and Mitsubishi Corporation that has expanded to around 55 stores opened on the GENDA/Kiddleton platform. Organizationally, TOMY is moving toward “ONE TAKARATOMY,” consolidating core business and strengths into a Product & Brand Core Group covering Action Brands & TCG, Digital, Character and Brand businesses.

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.