Kojima reports sales and profit growth, misses internal forecasts

Kojima Co., Ltd. announced its financial results for the fiscal year ended August 2025, reporting increased net sales and profits across all levels compared to the previous year, although these figures fell below the company's forecast. Net sales reached 282,790 million yen, a 4.8% increase year-on-year but 1.5% below forecast. Operating profit grew to 7,325 million yen, up 15.2% year-on-year, yet 3.0% under forecast. Ordinary profit was 7,732 million yen, a 16.7% increase year-on-year but 1.5% below forecast, and profit income was 4,709 million yen, up 17.7% year-on-year but 8.6% short of forecast.

The company's gross profit margin declined to 27.2% for the full year, a 0.3 percentage point decrease year-on-year and 0.5 percentage points below forecast. This was primarily attributed to an increased sales composition of cellular phones and other products, which typically carry lower profit margins. SG&A expenses rose by 2.5% year-on-year to 69,505 million yen, driven by proactive investments in human capital, system enhancements, and rebranding initiatives related to its 70th-anniversary project.

Sales performance showed varied trends by product category, with cellular phones and housing equipment driving growth. However, sales of PCs and air conditioners remained steady. Kojima forecasts continued growth for the fiscal year ending August 2026, with projected net sales of 294,000 million yen and operating profit of 7,600 million yen.