Yamada Consulting Q1: Consulting Profit Up 15%, Investment Down 28%, Net Profit Falls on a Prior-Year Tax Refund

Revenue down, gross profit up

Yamada Consulting Group Co., Ltd. (TSE: 4792) published consolidated results for the three months to June 30, 2026 on August 5, 2026 under Japanese GAAP. Revenue fell 2.3% to ¥6,411 million while gross profit rose 6.6% to ¥5,185 million — an unusual pairing, and one that reflects a mix shift toward the higher-margin consulting business. Operating profit was essentially flat at ¥1,038 million (+0.2%) and ordinary profit rose 2.7% to ¥1,016 million.

Net profit attributable to owners of the parent, however, fell 14.1% to ¥571 million, for earnings per share of ¥29.75 against ¥34.84. The company gives two reasons, neither operational: the prior-year quarter benefited from a corporate tax refund at a consolidated subsidiary, which reduced its tax charge, and profit attributable to non-controlling interests rose ¥49.6 million year on year. Comprehensive income rose 14.5% to ¥723 million.

The comparison base matters. A year earlier, operating profit had fallen 47.6%, ordinary profit 51.5% and net profit 57.3%. This quarter's flat-to-slightly-up profit lines therefore stabilise a much-reduced base rather than extend a decline.

Consulting grew on every line

The consulting segment lifted revenue 8.9% to ¥5,354 million, gross profit 8.4% to ¥4,809 million and operating profit 14.5% to ¥779 million. The company reports business strategy consulting, capital strategy consulting and real estate consulting all performing well, with enquiries and order intake proceeding smoothly across the consulting lines.

By service, consulting services grew revenue 10.8% to ¥2,804 million and gross profit 14.0% to ¥2,511 million, while M&A services grew revenue 7.0% to ¥2,549 million and gross profit 3.0% to ¥2,297 million on 34 deals closed against 27 a year earlier. By business area — a breakdown newly introduced this fiscal year, so without prior-year comparatives — business strategy consulting contributed ¥3,313 million of revenue, capital strategy ¥1,206 million, overseas consulting ¥476 million and real estate consulting ¥358 million.

Investment fell because nothing was sold

The investment segment saw revenue fall 36.2% to ¥1,057 million, gross profit 12.7% to ¥376 million and operating profit 27.7% to ¥260 million. Real estate investment sold well, but no unlisted equity investments were sold in the quarter — and because those disposals are lumpy by nature, their absence is enough to move the whole segment.

The balances behind that segment at quarter-end were ¥9,197 million of operational investment securities in the unlisted equity business, ¥3,721 million of real estate held for sale, and ¥4,058 million of operational investment securities in a fund-of-funds vehicle in which the group holds an 18.5% interest.

Guidance unchanged, and the year is back-loaded

Guidance for FY3/2027 is unchanged: revenue of ¥26,900 million (+0.7%), gross profit of ¥22,100 million, operating profit of ¥4,500 million (+20.2%), ordinary profit of ¥4,350 million (+17.1%) and net profit of ¥2,900 million (+0.1%). Within that, the consulting segment is targeted at ¥23,000 million of revenue and ¥3,260 million of operating profit, and the investment segment at ¥3,900 million and ¥1,240 million.

Progress after one quarter is 23.8% of the revenue target, 23.4% of gross profit and 23.0% of operating profit — a little behind the 25% a flat year would imply, which is consistent with a full-year plan that calls for a 20% rise in operating profit from a first quarter that delivered none. Total assets rose 1.7% from the March year-end to ¥33,800 million while net assets were flat at ¥23,891 million, taking the equity ratio to 58.3% from 59.7%. The annual dividend forecast is unchanged at ¥77.00 per share (¥38.00 interim plus ¥39.00 year-end).

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.