Kyodo Printing Co., Ltd. (7914): FY2025 Results Summary — Profit Rises on Cross-Shareholding Sales Despite Lower Sales and Operating Profit

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Kyodo Printing Co., Ltd. (7914) reported consolidated net sales of ¥98,205 million for the fiscal year ended March 31, 2026 (FY2025), down △1.8% (△1,772 million yen) year on year, as the company prioritized profitability over volume in its information-related businesses even as the Living and Industrial Materials business grew. Operating profit decreased △8.4% (△196 million yen) to ¥2,134 million on delayed progress of new projects and a decline in new orders in information-related businesses. Ordinary profit was roughly flat at ¥2,727 million (△0.7%), while profit attributable to owners of parent rose +19.6% (+649 million yen) to ¥3,960 million, supported by the planned sale of cross-shareholdings amid rising stock prices.

Consolidated Results (Full-Year Actual)

Against its full-year forecasts, Kyodo Printing achieved 94.9% of its ¥103,500 million net sales target and 76.2% of its ¥2,800 million operating profit target, while ordinary profit reached 83.9% of the ¥3,250 million target and profit attributable to owners of parent reached 102.9% of the ¥3,850 million target. In its analysis of the change in operating profit, the company attributed a +1,712 million yen positive impact to price adjustments and a +105 million yen positive impact to other factors (including lower depreciation expenses from the restructuring of production facilities), which were more than offset by a △292 million yen negative impact from increased personnel expenses and logistics costs (moderated in part by workforce reduction from the closure of the Tomakomai plant) and a △1,722 million yen negative impact from decreased sales, mainly in information-related businesses.

Item	FY2025	FY2024	Y/Y Change
Net sales (Million yen)	98,205	99,977	△1,772 (△1.8%)
Operating profit (Million yen)	2,134	2,331	△196 (△8.4%)
Ordinary profit (Million yen)	2,727	2,746	△19 (△0.7%)
Profit attributable to owners of parent (Million yen)	3,960	3,310	+649 (+19.6%)

Segment Results

In the Information communication segment, net sales fell △6.7% to ¥32,344 million and the segment posted an operating loss of ¥222 million (versus a loss of ¥176 million in FY2024), as sales decreased in printing businesses for publishing and general commercial due to order acquisition activities prioritizing profitability, and losses widened due to upfront expenses in the contents-related business, even though printing businesses for publishing and general commercial returned to the black after eliminating their deficits. In Information Security, net sales edged down △0.9% to ¥30,478 million on lower sales of smart cards for transport purposes and data printing, while information services BPO in areas such as healthcare and finance remained steady; operating profit fell △42.3% to ¥1,128 million due to delayed price pass-through for logistics costs and the absence of one-off projects such as BPO for local governments seen in the prior year. Living and industrial materials grew both net sales (+2.6% to ¥33,170 million) and operating profit (+25.7% to ¥1,521 million), reflecting new orders of tubes for cosmetics and progress in price adjustments across flexible packaging such as film and liquid packaging.

Segment	Metric	FY2025	FY2024
Information communication	Net sales (Million yen)	32,344	34,658
Information communication	Operating profit (Million yen)	△222	△176
Information Security	Net sales (Million yen)	30,478	30,755
Information Security	Operating profit (Million yen)	1,128	1,954
Living and industrial materials	Net sales (Million yen)	33,170	32,331
Living and industrial materials	Operating profit (Million yen)	1,521	1,211
Other	Net sales (Million yen)	2,211	2,231
Other (Reconciliations)	Operating profit (Million yen)	△293	△657

FY2026 Forecast

For the fiscal year ending March 31, 2027 (FY2026), Kyodo Printing forecasts net sales of ¥101,000 million (+2.8%), operating profit of ¥2,500 million (+365 million yen), ordinary profit of ¥2,950 million (+222 million yen) and profit attributable to owners of parent of ¥4,200 million (+239 million yen). By segment, the company forecasts operating profit of ¥450 million in Information communication (+672 million yen), ¥1,250 million in Information Security (+121 million yen) and ¥1,700 million in Living and industrial materials (+178 million yen).

Item	FY2026 Forecast	FY2025 (Actual)
Net sales (Million yen)	101,000	98,205
Operating profit (Million yen)	2,500	2,134
Ordinary profit (Million yen)	2,950	2,727
Profit attributable to owners of parent (Million yen)	4,200	3,960

Shareholder Returns

Kyodo Printing paid an annual dividend per share of 78 yen for FY2025, corresponding to a dividend on equity ratio (DOE) of 3.5%. For the fiscal year ending March 31, 2027, the company forecasts a dividend of 80 yen per share (comprising an interim dividend of 40 yen and a year-end dividend of 40 yen), based on a policy of targeting 3.5% DOE as a guideline; at the beginning of the fiscal year, both interim and year-end dividends are set based on a guideline of (equity at the end of the previous fiscal year + expected equity at the end of the current fiscal year) ÷ 2 × 1.75%. The company also carried out a stock split of one share into four shares in April 2025, a secondary offering of its shares in December 2025, and repurchased and cancelled treasury shares: under a Board resolution of November 26, 2025, it purchased 600,000 shares (2.1% of shares issued excluding treasury shares) for a total of 958,599,800 yen, and cancelled 3,480,000 shares (10.4% of shares issued before cancellation) on December 10, 2025, to mitigate the supply-and-demand impact of the December secondary offering, enhance shareholder returns and improve capital efficiency.

Item	FY2025 (Actual)	FY2026 (Forecast)
Annual dividend per share	78 yen	80 yen (interim 40 yen + year-end 40 yen)
DOE	3.5%	3.5% (guideline)

Medium-Term Plan

Under its medium-term management plan, Kyodo Printing targets operating profit of at least 4.5 billion yen and ROE of at least 8% for FY2027. The company said that despite quantitative challenges regarding operating profit in FY2025, some progress was achieved in strengthening existing businesses, including increased profits through profitability management in printing businesses for publishing and general commercial, and expansion of the contents-related business and information services BPO; for FY2026, it plans to restructure the printing business for publishing, generate more profit in the contents-related business, pursue profitability-focused expansion of information services BPO, and implement structural reforms in information security, while also promoting investments in overseas business and profitability improvement through price adjustments in the Living and Industrial Materials business. In its FY2025 cash allocation (the first fiscal year of a plan running from FY2025 to FY2030), cash inflows consisted of approximately 4.0 billion yen from strategic shareholdings sales (approximately 10.0 billion yen cumulative through FY2030) and approximately 6.0 billion yen of operating cash flow (approximately 45.0 billion yen cumulative through FY2030); cash outflows included repayments of borrowings, 2.7 billion yen of shareholder returns (at least 12.0 billion yen cumulative through FY2030), and approximately 5.0 billion yen of growth investments including structural reform and increased production efficiency in existing businesses (approximately 24.0 billion yen cumulative through FY2030 for growth investments). The company also recognizes its cost of shareholder’s equity as 5-7%, noting that ROE has risen in line with increased net income and is progressing near the cost of shareholder’s equity, while PBR remains below 1.

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.