President’s Message

Hello! Hidekuni Kuroda here. Let me tell you about our performance in 2025 and our future plans.

During 2025, the Japanese economy traced a moderate recovery path, with improved corporate earnings, employment situation, and personal income. However, the economic outlook was mired by economic uncertainties in China, US policy, and inflationary pressures.

Against this backdrop, we made a start on Unite for Growth 2027, our fourth medium-term plan aligned with our long-term vision, CCC 2030. Unite for Growth 2027 sets out a strategy of combining the knowledge assets in each of our businesses with the strengths that our group has cultivated to date to create interbusiness synergy, grow our existing businesses, and expand the reach of the business fields. The business climate had changed dramatically, but we maintained our competitiveness by flexibly adapting to the changing business conditions and shifting customer needs.

Net sales reached ¥359.8 billion (up 6.2% year on year). This year-on-year growth reflects the success of the furniture business in capitalizing on the brisk demand for office relocations and office renovations. Gross profit increased to ¥144.4 billion (up 8.3% year on year), reflecting sales price revisions, which more than offset the high raw material prices. Gross profit ratio came to 40.1% (up 0.8 points year on year). Selling, general and administrative expenses increased to ¥118.2 billion (up 6.6% year on year), reflecting strategic expenditures and organizational bolstering for expanding the business fields. SG&A ratio came to 32.9% (up 0.1 points year on year).

Reflecting these results, operating income reached ¥26.2 billion (up 16.5% year on year). Ordinary income reached ¥27.2 billion (up 11.5% year on year). Profit attributable to owners of parent was ¥21.4 billion (down 1.4% year on year). This result was a relative comedown from the bumper result in the previous year, when we recorded gain on sales of non-current assets.

The current business year (ending December 2026) will continue to advance our fourth medium-term plan, titled Unite for Growth 2027. The plan commits us to growing our existing businesses and expanding the reach of the business fields as part of our long-term vision, CCC 2030.

I look forward to updating you on our progress.