Back in the black
Bunkyodo Group Holdings Co., Ltd. (TSE: 9978) reported consolidated results for FY8/2026, September 1, 2025 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales rose 0.3% to ¥14,546 million, and the company swung to an operating profit of ¥78 million from a loss of ¥41 million and to an ordinary profit of ¥6 million from a loss of ¥83 million. Net profit attributable to owners of the parent was ¥41 million, or ¥0.92 per share, against a loss of ¥154 million. From this year, rental income from property is booked in net sales rather than non-operating income, and last year's figures have been restated. The company said print publishing continues its structural decline as reading moves online, while minimum-wage increases and higher logistics, maintenance and rent costs keep pressure on costs; it is working through a three-year plan, starting in FY8/2026, under the business-revitalisation programme agreed with its lenders.
What sold
In books, sales were helped by wider sourcing through Booksellers & Company and by higher cover prices; in magazines, comics stayed weak, while some periodicals were bought outright on a non-returnable basis to sharpen ordering. Stationery and goods kept selling strongly, helped by the popularity of sticker products. Dedicated trading-card corners, four of them opened during the year, now number seven, with both new-product sales and second-hand buying strong, and its Gashapon Department Store capsule-toy corners also kept growing. During the year the company renovated three stores, added a stationery corner at its Yokosuka More's store, opened a store combined with Surugaya at Shin-Sapporo DUO in July, and closed 12 stores.
Balance sheet, going concern and outlook
Total assets fell 6.3% to ¥8,955 million, mainly as cash fell ¥448 million, while net assets rose 3.6% to ¥1,198 million, lifting the equity ratio to 13.4% from 12.1%. Operating activities used ¥180 million of cash. The company, which slipped into negative net worth in FY8/2018 and completed a business-revitalisation ADR process with its lenders in September 2019 with support from major shareholder Nippan Group Holdings, said that although lenders have agreed to a three-year plan and repayment and financing terms after the ADR period, events or conditions that cast significant doubt on its ability to continue as a going concern still exist. For FY8/2027 it forecasts net sales of ¥14,000 million (−3.8%), operating profit of ¥170 million (+115.3%), ordinary profit of ¥100 million and net profit of ¥100 million (+138.2%). It pays no dividend on common shares.
| Metric | FY8/2026 | FY8/2025 | Change |
|---|---|---|---|
| Net sales (¥ million) | 14,546 | 14,504 | +0.3% |
| Operating profit (¥ million) | 78 | −41 | loss to profit |
| Ordinary profit (¥ million) | 6 | −83 | loss to profit |
| Net profit attrib. to owners of parent (¥ million) | 41 | −154 | loss to profit |
| EPS (¥) | 0.92 | −3.57 | loss to profit |
| Total assets (¥ million) | 8,955 | 9,559 | −6.3% |
| Net assets (¥ million) | 1,198 | 1,156 | +3.6% |
| Equity ratio | 13.4% | 12.1% | +1.3 pt |
| FY8/2027 guidance — revenue (¥ million) | 14,000 | — | −3.8% |
| FY8/2027 guidance — operating profit (¥ million) | 170 | — | +115.3% |
| FY8/2027 guidance — ordinary profit (¥ million) | 100 | — | — |
| FY8/2027 guidance — net profit (¥ million) | 100 | — | +138.2% |
| Annual dividend per share (¥) | 0.00 | 0.00 | unchanged |
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.