Nagaileben Lifts Full-Year Net Profit 3.0% to ¥2,650 Million as Price Rises Restore a 40% Gross Margin, and Raises Its Ordinary Dividend to ¥70

A strong final quarter rescues the core market

Nagaileben Co., Ltd. (TSE: 7447), Japan's leading maker of uniforms for nurses, doctors and care workers, published consolidated results for FY8/2026, the year from September 1, 2025 to August 31, 2026, on October 1, 2026 under Japanese GAAP. Net sales rose 1.3% to ¥17,205 million, operating profit 1.2% to ¥3,625 million, ordinary profit 3.5% to ¥3,835 million and profit attributable to owners of the parent 3.0% to ¥2,650 million. Earnings per share rose faster, 6.0% to ¥88.21, because buybacks reduced the share count.

The core market of healthcare and doctor wear grew 3.7% to ¥12,437 million, but the year was back-loaded. Hospitals and care homes squeezed by inflation, wage costs and staff shortages delayed uniform renewals, and price negotiations slowed deals. After the upward revision of medical and nursing-care fees, new large contracts and a new range of Miffy-branded products pulled renewal demand forward, and core sales jumped 17.5% in the fourth quarter. The peripheral market fell 5.4% to ¥4,506 million: patient wear dropped 11.8% as large orders a year earlier did not recur and hospitals held back replenishment buying, while surgical wear rose 7.3%. Overseas sales grew 16.9% to ¥262 million on delayed deliveries in Taiwan and a newly opened Seoul branch.

Price rises and offshore production lift the margin

Higher raw-material and energy costs linked to tension in the Middle East, a higher minimum wage in Japan and the weak yen all pushed up production costs. Nagaileben responded by pushing through price revisions, moving more production overseas and using more competitively priced foreign fabrics, and the gross margin rose 0.5 points to 40.0%, lifting gross profit 2.6% to ¥6,887 million. Selling, general and administrative expenses rose 4.3% to ¥3,262 million on wage increases, so the operating margin held at 21.1%.

Heavy shareholder returns shrink the balance sheet

Operating cash flow rose to ¥3,528 million from ¥2,180 million, helped by a ¥1,354 million fall in receivables. The company paid ¥3,046 million of dividends, including last year's commemorative payment, and spent ¥2,003 million buying back 1,093,000 shares in two tranches; it also cancelled 5,000,000 treasury shares, cutting the issued total to 30,736,000. Total assets fell 5.6% to ¥42,192 million and net assets 5.5% to ¥39,056 million, but the equity ratio remained exceptionally high at 92.6%. On October 1, 2026 the board approved a further buyback of up to 600,000 shares, or ¥1 billion, about 2.04% of shares outstanding, between October 2 and December 31, 2026.

Flat profit expected for FY8/2027

For FY8/2027 Nagaileben forecasts net sales of ¥17,500 million (+1.7%), operating profit of ¥3,602 million (−0.7%), ordinary profit of ¥3,893 million (+1.5%) and net profit of ¥2,660 million (+0.4%), or ¥90.48 per share. It plans growth of 0.7% in the core market, 2.3% in the peripheral market and 37.5% overseas, where it is proposing uniform leasing to hospitals in South Korea and Taiwan. The first half is expected to be weaker, with operating profit down 10.1% to ¥1,242 million. The dividend for FY8/2026 is ¥70.00, a payout ratio of 79.4%, against ¥100.00 a year earlier, which included a ¥40.00 commemorative dividend; the ordinary dividend therefore rose from ¥60.00. The company plans another ¥70.00 for FY8/2027, in line with its policy of paying out at least 50% of non-consolidated net profit.

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.