Material Group Inc.
156A・Growth Market・Services
PR Consulting Business
The group's core business, supporting brand growth for major domestic companies centered on PR thinking.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (9M FY2026 (ending August 2026) cumulative) | ¥4,744 million | ¥4,027 million (9M FY2025 (ending August 2025) cumulative) | ↑ |
| Segment profit (9M FY2026 (ending August 2026) cumulative) | ¥1,096 million | ¥903 million (9M FY2025 (ending August 2025) cumulative) | ↑ |
| Segment revenue (FY2025 (ended August 2025) full year) | ¥5,343 million | — | ↑ |
| Segment profit (FY2025 (ended August 2025) full year) | ¥1,146 million | — | ↑ |
| Segment revenue (H1 FY2026 (ending August 2026)) | ¥3,140 million | — | ↑ |
| Number of PR persons (Material Co., Ltd.) | 184 (FY2025 (ended August 2025)) | 152 (FY2024 (ended August 2024)) | ↑ |
| Gross profit per PR person (monthly, Material Co., Ltd.) | ¥1,312 thousand | — | — |
Business Details
The core business of the group, comprising Material Co., Ltd. (a core subsidiary), Rooms Co., Ltd., and Candlewick Co., Ltd. Primarily serving major domestic corporate clients, the segment provides comprehensive support—from strategic design through execution—for marketing communication initiatives including advertising, centered on various PR methods such as TV PR, events, and SNS campaigns, aimed at raising and transforming brand, product, and service awareness. The source of value creation is professional talent skilled in PR thinking and storytelling ("PR persons").
Recent Overview
Continued steady growth in the nine-month cumulative period, with revenue up 17.8% and profit up 21.3% year on year.
In the nine months ended May 2026 (9M FY2026, ending August 2026), the segment achieved revenue of ¥4,744 million (up 17.8% year on year) and segment profit of ¥1,096 million (up 21.3% year on year). At Material Co., Ltd., hiring of PR persons progressed smoothly, and both agency and direct sales channels performed steadily. In addition to repeat orders from existing clients, acquisition of new clients across diverse industries also advanced. Rooms Co., Ltd. and Candlewick Co., Ltd. also focused on acquiring new clients and securing continuing orders from existing clients.
Key Products
Growth Drivers
- Strengthened supply capacity through continued expansion in hiring of PR persons (152 in FY2024 (ended August 2024) → 184 in FY2025 (ended August 2025))
- Expanded acquisition of new clients across diverse industries through both agency and direct sales channels
- Expansion of digitally-driven marketing communication support through deepened collaboration with the digital marketing business (Bridge Co., Ltd.)
- Overall growth of the marketing communications market (Japan's advertising market grew 4.9% year on year in 2024)
- Stable accumulation of repeat and continuing orders from existing clients
Risks
- High dependence on professional talent such as PR persons, creating risk that intensified hiring competition or turnover directly affects performance
- Risk of revenue fluctuation due to economic conditions or reductions in client marketing budgets, as the business is mainly based on spot-type project contracts
- Client concentration risk from revenue dependence on the Hakuhodo DY Group (¥913 million in FY2025 (ended August 2025), approximately 14.5% of total revenue)
- Risk of limited margin improvement relative to revenue growth due to rising costs associated with headcount increases
- Risk of widening productivity gaps versus competitors if business transformation through AI utilization, etc., is delayed
Last updated: November 26, 2025