SMS reports strong growth, announces new CEO

SMS Co., Ltd. reported robust financial results for the first six months of the fiscal year ending March 2026. Net sales reached JPY 33,475 million, a 5.1% increase year-on-year. Operating income rose by 22.9% to JPY 4,391 million, while ordinary income grew by 16.7% to JPY 5,750 million. Profit attributable to owners of parent saw a substantial 36.0% surge, totaling JPY 4,992 million. The company confirmed its full-year guidance for FY03/26 remains unchanged, indicating steady progress despite external impacts on its Career and Overseas segments.

The company's growth was driven by strong performance in its Elderly/Disability Care Operators Business, with Kaipoke memberships increasing to 58,100 service offices as of October 1, 2025. This segment recorded JPY 6,591 million in net sales, a 14.2% increase. The Career Business also contributed, with combined sales of JPY 21,691 million, up 5.0%. However, the Overseas Business saw an 11.9% decrease in net sales to JPY 3,418 million due to reduced marketing budgets and concerns in the Middle East.

SMS also announced a leadership transition: Masaki Takahata will be appointed representative director (president and chief executive officer) on January 1, 2026. Current executives Natsuki Goto and Masato Sugizaki are scheduled to retire from the board in June 2026. The company remains committed to its medium-term targets, aiming for a 15% or higher compound annual growth rate in earnings per share and a 20% return on equity by FY03/31, while maintaining a progressive dividend policy.