UNIVERSAL ENGEISHA CO.,LTD
6061・Standard Market・Services
Green Business
A core business developing rental green services for corporate clients domestically and internationally.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative Q3) | ¥11,478 million | ¥10,040 million | ↑ |
| Segment operating profit (cumulative Q3) | ¥2,218 million | ¥1,969 million | ↑ |
| Segment revenue year-on-year change | +14.3% | — | ↑ |
| Segment operating profit year-on-year change | +12.6% | — | ↑ |
| Operating margin - Kanto Area | 24.0% | 22.5% | ↑ |
| Operating margin - Kansai Area | 26.4% | 27.2% | ↓ |
| Operating margin - Overseas Area | 4.7% | 9.0% | ↓ |
Business Details
This segment consists of the Rental Green business, which provides rental and maintenance of foliage plants, artificial flowers, fresh flowers, etc., primarily targeting corporate clients such as offices, commercial facilities, and hotels, and the Green Service business, which includes display construction and landscaping for events and exhibitions. Domestically, it operates in the Kanto Area and Kansai Area, and overseas in the US, Singapore, Shanghai, and other Overseas Areas. This is the core segment, accounting for approximately 69% of the Group's total revenue.
Recent Overview
Revenue increased 14.3% and operating profit increased 12.6%, driven by landscaping and display construction.
During the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), domestic Rental Green contracts progressed as planned, and revenue from landscaping construction and display construction continued to grow following the second quarter. The operating margin in the Kanto Area improved to 24.0% (22.5% in the prior year period), while the Overseas Area declined to 4.7% (9.0% in the prior year period). In addition, the company acquired the Rental Green business of Plant Detail, Inc. through a business transfer, increasing goodwill by ¥133,132 thousand (the allocation of acquisition cost is provisional).
Key Products
Growth Drivers
- Steady progress of domestic Rental Green contracts as planned and accumulation of stock-type revenue through new customer acquisition
- Expansion of Green Service revenue such as landscaping construction and display construction (up 16.3% year on year in the cumulative nine months)
- Business scale expansion through M&A (including the transfer of Plant Detail, Inc.'s Rental Green business)
- Growing demand for wall greening and rooftop greening in corporate CSR activities
- Overseas Area revenue expansion (Rental Green Overseas Area revenue of ¥1,481,628 thousand in the cumulative nine months, up from ¥1,204,443 thousand in the prior year period)
Risks
- Sluggish profitability in the Overseas Area (operating margin of 4.7% in the cumulative nine months, down from 9.0% in the prior year period)
- Rising energy resource and raw material costs due to yen depreciation affecting procurement costs
- As a labor-intensive industry, securing and developing specialized personnel is a constraint on business expansion
- Increase in goodwill balance due to M&A (an increase of ¥133,132 thousand from the acquisition of Plant Detail, Inc. in the Green Business; the allocation of acquisition cost is provisional) and integration risk
- Risk of corporate clients restraining capital expenditure due to stagnant personal consumption and uncertain economic outlook
Last updated: September 26, 2025