Financial Summary for Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Consolidated Business Results for Fiscal Year Ending March 2026

For the fiscal year ending March 2026, SMS Co., Ltd. reported consolidated net sales of 64,735 million yen (6.2% increase YoY), operating income of 6,787 million yen (7.1% increase YoY), and ordinary income of 8,721 million yen (4.4% increase YoY). However, due to the recording of impairment loss on intangible assets abroad amounting to 22,957 million yen, net income attributable to owners of the parent turned to a loss of 14,317 million yen. By segment, the Career domain performed steadily with 38,276 million yen in net sales (5.7% increase YoY), and the Nursing Care & Disability Welfare Providers domain achieved 13,715 million yen (14.7% increase YoY), while the Overseas segment declined to 8,851 million yen (5.7% decrease YoY).

Financial Position and Cash Flow Status

Total assets stood at 52,774 million yen (a decrease of 23,765 million yen from the previous period), primarily impacted by impairment losses in overseas operations. Liabilities were 26,050 million yen (down 3,171 million yen), and net assets were 26,724 million yen (down 20,594 million yen). Cash flow from operating activities increased by 8,799 million yen, while cash outflows from investing and financing activities were 4,128 million yen and 7,347 million yen respectively, resulting in cash and cash equivalents of 12,547 million yen (a decrease of 2,705 million yen).

Dividends and Earnings Outlook for Fiscal Year Ending March 2027

The year-end dividend for fiscal 2026 is planned at 29.50 yen per share, an increase of 1 yen from the previous year, and a further increase to 30.50 yen per share is expected for fiscal 2027. The consolidated earnings forecast for fiscal 2027 anticipates net sales of 71,834 million yen (11.0% increase YoY), operating income of 6,801 million yen (0.2% increase YoY), and a return to net income attributable to owners of the parent of 6,165 million yen. Growth in operating income is expected to be limited, as approximately 2 billion yen will be invested upfront to build future earnings foundations.