Scroll Corporation (8005): FY2025 Results Summary — Record Net Sales Overshadowed by Restructuring and Goodwill Impairment Losses

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Scroll Corporation reported consolidated net sales of 88,548 million yen for FY2025 (the fiscal year from April 1, 2025 to March 31, 2026), up 5.4% year on year and a record high, driven by strong growth in the Solutions Business. However, operating profit fell 5.4% to 5,727 million yen and ordinary profit fell 4.0% to 6,166 million yen, while profit attributable to owners of parent dropped 35.1% to 2,768 million yen after the company recorded extraordinary losses of 1,615 million yen, including a loss on business restructuring and an impairment loss on goodwill. For FY2026 the company forecasts consolidated net sales of 90,000 million yen and ordinary profit of 6,500 million yen, and has announced a revised shareholder return policy alongside a commemorative dividend marking the 40th anniversary of its TSE First Section (now Prime Market) listing.

Consolidated Results (Full-Year Actual)

On a consolidated basis, the company increased sales but decreased profit. The presentation states that the extraordinary losses, including loss on business restructuring and impairment loss on goodwill, resulted in a significant decrease in net profit.

Item	FY2025 Actual	FY2024 Actual	FY2023 Actual	YoY Change (Amount)	YoY Change (Rate)
Net sales (millions of yen)	88,548	84,030	79,826	+4,517	+5.4%
Operating profit (millions of yen)	5,727 (6.5%)	6,052 (7.2%)	5,313 (6.7%)	-324	-5.4%
Ordinary profit (millions of yen)	6,166 (7.0%)	6,424 (7.6%)	5,512 (6.9%)	-258	-4.0%
Profit attributable to owners of parent (millions of yen)	2,768	4,267	3,649	-1,498	-35.1%
Earnings per share (yen)	80.71	124.15	105.05	-43.44	—
Return on Equity	7.5%	12.2%	11.2%	-4.7pt	—

Segment Results

The company changed some of its reportable segment classifications from FY2025, transferring certain overseas subsidiaries previously included in the Group Jurisdiction Business to the Mail-order Business; FY2024 comparison figures have been adjusted to reflect the new segments. Solutions Business net sales rose 20.4% to 37,605 million yen, driven mainly by strong new contracts in logistics outsourcing and the opening of a new logistics center, SLC Tsukuba, in June 2025, with segment profit up 76.5% to 1,570 million yen on improved profitability from rectifying unprofitable structures. Mail-order Business net sales fell 6.0% to 36,662 million yen, with segment profit down 19.8% to 4,181 million yen, as the company struggled to secure orders during its early-to-mid-summer peak season due to a declining customer base, inflation and shifting market trends, and profit margin was hit by inventory clearance and the weak yen. E-commerce Business net sales were roughly flat at 15,312 million yen (+0.2%), while segment profit rose 136.0% to 385 million yen; the segment withdrew from unprofitable parallel-import and travel businesses (recording an extraordinary loss) while sales of emergency preparedness products remained strong.

Segment	Metric	FY2025 Actual	FY2024 Actual	Change (Amount)	Change (Rate)
Solutions Business	Net sales (millions of yen)	37,605	31,223	+6,381	+20.4%
Solutions Business	Segment profit / margin	1,570 (4.2%)	889 (2.9%)	+680	+76.5%
Mail-order Business	Net sales (millions of yen)	36,662	38,993	-2,331	-6.0%
Mail-order Business	Segment profit / margin	4,181 (11.4%)	5,210 (13.4%)	-1,029	-19.8%
E-commerce Business	Net sales (millions of yen)	15,312	15,281	+30	+0.2%
E-commerce Business	Segment profit / margin	385 (2.5%)	163 (1.1%)	+221	+136.0%

FY2026 Forecast

For FY2026, Scroll forecasts consolidated net sales of 90,000 million yen (+1.6% year on year), ordinary profit of 6,500 million yen (+5.4%), profit attributable to owners of parent of 4,300 million yen (+55.3%), and ROE of 11.1% (+3.6pt). By segment, the company forecasts Solutions Business net sales of 42,100 million yen (+12.0%) and ordinary profit of 2,100 million yen (+33.7%); Mail-order Business net sales of 38,000 million yen (+3.6%) and ordinary profit of 4,200 million yen (+0.4%); and E-commerce Business net sales of 10,500 million yen (-31.4%) and ordinary profit of 200 million yen (-48.1%). In the FY2026 net sales and ordinary profit composition chart, Solutions Business accounts for 44% of net sales and 32% of ordinary profit, Mail-order Business for 40% of net sales and 65% of ordinary profit, and E-commerce Business for 11% of net sales and 3% of ordinary profit (composition ratios before consolidation adjustments).

Item	FY2026 Forecast	FY2025 Actual	YoY Change
Net sales (millions of yen)	90,000	88,548	+1.6%
Ordinary profit (millions of yen)	6,500	6,166	+5.4%
Ordinary profit / net sales	7.2%	7.0%	+0.3pt
Profit attributable to owners of parent (millions of yen)	4,300	2,768	+55.3%
Return on Equity	11.1%	7.5%	+3.6pt

Shareholder Returns

FY2025 annual dividends per share totaled 59.0 yen, comprising an interim dividend of 29.5 yen and a year-end dividend of 29.5 yen, with a consolidated dividend payout ratio of 73.1% and DOE of 5.4%. During the year the company acquired 790,000 shares of treasury stock for a total of 999,868,680 yen, in the period from November 5, 2025 to January 13, 2026. Announced on May 7, 2026, the company’s basic policy on shareholder returns from FY2026 onwards is to promote ROE-oriented management aiming for direct profit returns and maximization of medium- to long-term shareholder value; toward achieving the ROE of 15% or higher set out in its medium- to long-term vision (FY2029), it will implement a progressive dividend based on whichever is higher of a consolidated dividend payout ratio of 60% or consolidated DOE of 8.5%, and after growth investments, if there is further room for additional returns, it will flexibly undertake measures such as share buybacks. For FY2026, the company forecasts an annual dividend of 102.0 yen per share, comprising interim dividends (forecast) of 48.5 yen and year-end dividends (forecast) of 48.5 yen, plus commemorative dividends of 2.5 yen at both the interim and year-end (2.5 yen + 2.5 yen = 5.0 yen) to mark the 40th anniversary of the company’s listing on the TSE First Section (currently the Prime Market). The shareholder benefit program will be discontinued upon delivery of the shareholder benefits to shareholders holding 100 shares (one unit) or more as of March 31, 2026, as recorded in the shareholder registry.

Medium-Term Plan / Capital Allocation

Scroll has formulated a medium- to long-term vision outlining its target state by its 90th anniversary in FY2029, under the theme “Solutions for All Aspirations,” aiming to become a company essential to society for 100 years and beyond. Quantitative targets for FY2029 are consolidated net profit of 6 billion yen, ROE of 15.0%, and a total payout ratio of around 60%, compared with FY2025 actual figures of consolidated net profit of 2.76 billion yen, ROE of 7.5%, and a total payout ratio of 109.0%. Under its Capital Allocation Policy for the five-year cumulative period from FY2025 to FY2029, sources of cash are operating cash flows of 33 billion yen and effective utilization of assets of 2 billion yen, supplemented by leveraging interest-bearing debt, while allocation comprises strategic investment (M&A to drive non-linear growth) of 15 billion yen, growth investment (maintenance and renewal of existing facilities, expansion of logistics facilities, and strengthening of operational efficiency and business foundations) of 10 billion yen, and shareholder return of around 16 billion yen.

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.