■Performance trends of NAC ＜9788＞

2. Trends by segment

(1) Kurikura business

Net sales were 7803 million yen (up 0.5% from the same period last year), and operating profit was 870 million yen (down 4.4% from the same period). According to the planned ratio (mid-term basis), sales fell short of 3.7%, and operating profit exceeded 16.1%, which was achieved in terms of profit. While demand for water purification type water dispensers that do not require bottle delivery and can be used at a fixed price and can be used inexpensively is increasing, competition for customer acquisition is intensifying. In the direct management division, funds were intensively invested in sales promotion in the form of upfront investment, such as aggressive web advertisements for the small water purification type water server “putio,” which began selling last year, and strengthening event sales etc. at shopping malls, etc., so the number of new customer acquisitions remained steady. Also, as a cancellation prevention measure, the cancellation rate declined as a result of carrying out alliances with various companies and proposing topical products as secondary products. As for the hypochlorous acid aqueous solution “ZiACO,” after the transition of the novel coronavirus infection to class 5, it returned to the pace before the COVID-19 pandemic due to the convergence of special demand, and decreased compared to the same period last year. As a result, sales in the directly managed division landed with a slight increase compared to the same period last year. In the merchant division, there was an increase in bottle consumption per customer and a decline in cancellation rates, but on the other hand, the number of customers was sluggish due to intensifying competition with other companies' products, and sales declined slightly compared to the same period last year. On the profit side, sales promotion expenses also increased due to the focus on “putio,” and operating profit declined compared to the same period last year, and the operating profit margin decreased 0.5 points to 11.2%.

(2) Rental business

Net sales were 8870 million yen (up 1.8% from the same period last year), and operating profit was 742 million yen (down 8.1% from the same period). According to the planned ratio (mid-term basis), sales exceeded 0.8%, and operating profit fell short of 12.7%. In the Duskin business, sales increased to 6645 million yen (up 4.3% from the same period). Factors include a decline in customer cancellation rates in the dust control division and strong sales of secondary products. In the care service division, Duskin ＜4665＞ implemented price revisions (price increases) for the “service master business” (professional cleaning service) and the “merry maid business” (housework agency service), which contributed to the increase in sales. In addition, in the Health Rent division, the number of regular customers increased due to the effects of opening new stores based on capital and business alliances with Duskin, contributing to an increase in sales.

In the Wiz business, which handles the pest exterminator “with,” in addition to the increase in the number of new customers due to sales campaigns, sales of secondary products to existing customers contributed, and sales increased to 1102 million yen (3.9% increase from the same period). Also, at Ernest Co., Ltd., regular sales increased by strengthening sales promotion activities such as bed making for lodging facilities against the backdrop of an increase in inbound demand, while sales declined to 969 million yen (20.3% decrease from the same period) due to a decrease in sales associated with the end of the novel coronavirus infection border control support business. At Cans, the number of orders received has expanded due to cooperation with the corporate sales department of the Duskin business in restoration work for rental properties, which contributed to sales of 230 million yen (137.1% increase from the same period).

In terms of profit, the increase in sales and administration costs associated with opening new stores in the Duskin business and the introduction of sales management systems in the care service division became a bottleneck, resulting in a decline in profit.

(3) Construction consulting business

Net sales were 2345 million yen (down 11.1% from the same period last year), and operating losses were 65 million yen (loss of 204 million yen in the same period last year). According to the planned ratio (mid-term basis), sales fell short of 34.8%, and operating profit landed in the red against the plan of 250 million yen. In the consulting division, local construction companies that are customers face issues such as a decrease in the number of construction starts in the housing industry and the start of repayment of COVID-19 loans, and the state where they cannot afford to invest in management improvements due to financial circumstances continues. While the number of construction starts was sluggish, the company tried to stimulate demand with measures such as expanding construction/management know-how products for construction companies, etc., but sales declined to 1257 million yen (down 3.7% from the same period). Knack House Partner's performance was sales of 1099 million yen (down 18.6% from the same period). In the smart energy business, there was a decrease in wholesale sales due to the effect of changing from conventional wholesale to lumber work contracts, and the number of completed timber work contracts centered on newly built houses also declined due to a decrease in construction demand, leading to a decrease in sales. In the housing network business, the decline in sales was due to a decrease in the number of housing installations at Ace Home brand franchise member stores and a decrease in component sales. In terms of profit and loss, as a result of the consulting division suppressing sales management costs and outsourcing costs as orders declined, operating losses shrunk drastically compared to the same period last year. Furthermore, profit and loss include 20 million yen of goodwill amortization of Knack House Partners.

(4) Housing business

Net sales were 5334 million yen (up 53.2% from the same period last year), and operating losses were 196 million yen (loss of 245 million yen in the same period last year). According to the planned ratio (mid-term basis), sales exceeded 33.4%, and operating losses were estimated at 50 million yen, resulting in a loss of 196 million yen. Furthermore, operating losses include a goodwill amortization amount of 15 million yen for Shuwa Sumiken, which became a subsidiary in 2024/5. As for KDI, sales prices were reviewed to stimulate customer demand in response to sluggish demand for housing construction, and as a result of increasing the number of buildings sold, sales increased drastically to 2891 million yen (30.3% increase from the same period). Also, in addition to custom-built homes, Jaywood focused on selling built-for-sale houses, and sales were 1,526 million yen (up 20.9% from the same period). Furthermore, in the interim period ending 2025/3, sales of Shuwa Sumiken, which became a consolidated subsidiary from 2024/6, contributed to an increase in sales of 772 million yen, and sales of Shuwa Co., Ltd., a subsidiary of Shuwa Sumiken, of 63 million yen. In terms of profit and loss, in addition to these sales growth effects, losses were reduced by 49 million yen due to a review of sales management costs centered on fixed costs at J-WOOD and the consolidated effects of Shuwa Sumiken.

(5) Beauty/health business

Net sales were 3556 million yen (up 9.1% from the same period last year), and operating profit was 133 million yen (up 185.3% from the same period). According to the planned ratio (mid-term basis), sales exceeded 1.6%, and operating profit exceeded 166.4%, achieving the planned value. Note, profit and loss include 75 million yen goodwill amortization amounts of JIMOS, Tremy, and TOMOE Wines & Spirits. At JIMOS, which sells cosmetics and health foods, etc., commercialization of products progressed due to the increase in entry of other companies in the natural cosmetics field, which has conventional strengths, and sales related to “Coyori” and “Tofu Moritaya” declined. Meanwhile, since the decline in sales was compensated by strong sales of “MACCHIA LABEL” and “?$#@$ PURETE,” sales were 2356 million yen (0.7% increase from the same period last year), almost on par with the same period last year. At Tremy, orders for contract manufacturing of cosmetics increased, repeat sales were also strong, and sales were 488 million yen (up 2.6% from the same period). Bel Air, which sells dietary supplements, saw a decrease in sales volume due to the aging of existing members, and sales were 134 million yen (down 1.8% from the same period). In upsale, which sells cosmetics, health foods, pharmaceuticals, etc., sales declined due to product shortages due to poor procurement of the main hair care products, and sales declined to 290 million yen (24.8% decrease from the same period) due to the effects of intensifying price competition at EC malls. TOMOE Wines and Spirits will be consolidated for the full year from the 2025/3 fiscal year, but in addition to the import and wholesale sales of Western alcoholic beverages centered on conventional wine, mail order sales have begun at EC malls operated by Upsale. Synergy was demonstrated, and sales were recorded at 400 million yen. On the profit side, in TOMOE Wines & Spirits, there was a time lag when reflecting the increase in purchase prices due to depreciation of yen in sales prices, and although losses were recorded, cost reduction due to sales promotion efficiency improvements in JIMOS was successful, and operating profit increased significantly compared to the same period last year.

(Author: FISCO Analyst Tomokazu Murase)