DANTO HOLDINGS CORPORATION
5337・Standard Market・Glass & Ceramics Products
Ceramics for Construction Business
Core business accounting for approximately 88% of Group sales, but structural losses continue
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Q1 FY2026, ending December 2026) | ¥888 million | ¥1,073 million (Q1 FY2025, ending December 2025) | ↓ |
| Operating loss (Q1 FY2026, ending December 2026) | -¥188 million | -¥193 million (Q1 FY2025, ending December 2025) | — |
| Sales (full year FY2025, ending December 2025) | ¥4,198 million | ― | ↓ |
| Operating loss (full year FY2025, ending December 2025) | -¥767 million | ― | ↓ |
| Depreciation (Q1 FY2026, ending December 2026) | ¥36 million (consolidated total) | ¥49 million (Q1 FY2025, ending December 2025, consolidated total) | ↓ |
Business Details
The core segment of Danto HD, which manufactures, sells, and installs ceramics for construction (tiles). It handles Interior, Exterior, Flooring & Mosaic Tiles as well as tile installation materials, with a broad presence spanning private housing to public and non-residential sectors. In Q1 FY2026 (ending December 2026), sales were ¥888 million, accounting for approximately 88% of consolidated sales of ¥1,009 million, but an operating loss of ¥188 million continued. Demand has notably declined, particularly for exterior wall tiles for multi-family housing.
Recent Overview
Demand for exterior wall tiles for multi-family housing declined notably, with sales down 17.2% year-on-year
Sales in the Ceramics for Construction Business in Q1 FY2026 (ending December 2026) were ¥888 million (¥1,073 million in the same quarter of the prior year), down 17.2%. Against a backdrop of worsening profitability in the condominium and rental apartment markets, plan revisions and construction restraint led to a marked decline in installation area for the mainstay exterior wall tiles for multi-family housing. Construction contract sales were zero. Meanwhile, the operating loss narrowed slightly to ¥188 million from ¥193 million in the same quarter of the prior year. The company continues to work on expanding its share in the interior market, centered on the high value-added brand "A.a.D," but has not yet achieved a sales recovery.
Key Products
Growth Drivers
- Continued demand for renovation and redevelopment in public investment and non-residential sectors (offices, commercial facilities, accommodation facilities, etc.)
- Domestic and overseas expansion of high value-added tiles under the proprietary brand "A.a.D (Alternative Artefacts Danto)" and enhancement of brand recognition
- Expanding market share in the interior market for commercial facilities, stores, offices, and residential interiors
- Continued design-proposal-based sales approach to expand sales of custom-order and high value-added tiles
- Cost reduction through improved factory utilization rates and strengthened sales structure to enhance specification power
Risks
- Continued trend of construction and investment restraint, particularly in the private housing sector (especially condominiums and rental apartments for sale)
- Pressure to reduce tile installation area due to persistently high construction material and labor costs and rising interest rates
- Risk of tile substitution with lower-cost products or alternative materials amid rising construction costs
- Rising manufacturing costs due to higher shipping and energy costs and rapid yen depreciation
- Severe shortage of skilled workers and persistently high labor costs in the construction industry
- Rising manufacturing costs due to deteriorating utilization rates from declining production volumes
- Risk of excess inventory (merchandise and product balances increased by ¥142 million from the previous fiscal year-end to ¥1,640 million)
Last updated: March 25, 2026