GUNZE LIMITED
3002・Prime Market・Textiles & Apparels
Functional Solutions Business
Gunze's profit-driving segment manufacturing and selling plastic functional materials and machinery
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥47,543 million | ¥52,204 million | ↓ |
| Operating Profit | ¥7,234 million | ¥7,205 million | ↑ |
| Operating Margin | 15.2% | 13.8% | ↑ |
| Segment Assets | ¥55,860 million | ¥56,410 million | ↓ |
| Depreciation and Amortization | ¥2,933 million | ¥2,803 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets | ¥5,866 million | ¥1,784 million | ↑ |
Business Details
Manufactures and sells Plastic Film, Engineering Plastics, and machinery (Printing & Food-related Machinery). Main customer markets are OA equipment, semiconductors, food packaging, and environmental fields. In FY2026 (ending March 2026), the segment recorded net sales of ¥47,543 million and operating profit of ¥7,234 million, remaining the core profit segment accounting for approximately 148% of the group's total operating profit (84% of the total pre-elimination segment profit) following the discontinuation of the Electronic Components business.
Recent Overview
Net sales declined due to the discontinuation of the Electronic Components business, but operating profit rose slightly and margin improved
Net sales for FY2026 (ending March 2026) were ¥47,543 million (down 8.9% year on year). The discontinuation of the Electronic Components business reduced net sales by approximately ¥2,900 million, but operating profit improved by approximately ¥300 million. In Plastic Film, new environmentally-friendly products contributed to increased profit domestically, while sluggish consumption and price-cutting in overseas markets weighed on results. Engineering Plastics was affected by the prolonged inventory adjustment in the semiconductor market. Capital expenditure increased substantially due to the Konan Plant expansion, with the increase in tangible and intangible fixed assets reaching ¥5,866 million, more than 3.3 times the prior-year level.
Key Products
Growth Drivers
- Increased domestic volume from the rollout of new environmentally-friendly Plastic Film products and the promotion of the transformation into a "circular manufacturer"
- Strengthening of production capacity for the medical and semiconductor fields and response to growing demand through the Konan Plant expansion
- Recovery and expansion of demand for Engineering Plastics in the OA equipment, semiconductor, and general industrial fields
- Improved profit margin (rising to 15.2% operating margin) through the discontinuation of the Electronic Components business and the resulting elimination of unprofitable operations
- Development of new markets through products for the energy field (SBU)
Risks
- Prolonged sluggish consumption and price-cutting competition in overseas markets, particularly in Asia
- Delayed demand recovery due to supply chain inventory adjustments in the semiconductor market
- Impact of exchange rate fluctuations (yen depreciation/appreciation) on export competitiveness and procurement costs
- Increased fixed costs and investment recovery risk associated with large-scale capital investments such as the Konan Plant expansion
- Increased capital expenditure burden due to tightening environmental regulations
Last updated: June 24, 2026