CAR MATE MFG. CO., LTD.

Business Details

Comprises four divisions: automotive accessories, roof carriers/tire chains, chemical products, and electronic/electrical equipment. Manufactures and sells child seats, INNO brand roof carriers, Biathlon brand non-metallic tire chains, air fresheners/deodorizers, drive recorders, remote engine starters, and other products. Sales channels include car accessory specialty stores, home centers, drugstores, and e-commerce routes, with operations both domestically and overseas. Major customers include Autobacs Seven Co., Ltd. (18.0% of net sales) and Amazon Japan G.K. (12.0% of net sales). Overseas operations include a U.S. subsidiary (Car Mate USA, Inc.) and a manufacturing subsidiary in China.

Recent Overview

Cumulative Q3 saw a decline in sales, but improved cost ratio led to increased operating income; an impairment loss was recorded

Net sales of the Automotive-related Business for the cumulative nine months of Q3 FY2026 (ending March 2026) (April to December 2025) were ¥9,970 million (down 8.8% year on year). However, operating income increased to ¥1,163 million (up 4.6% year on year) due to an improved cost ratio. For the full year (FY2025, ended March 2025), net sales were ¥14,020 million (down 2.5% year on year) and operating income was ¥1,292 million (up 14.8% year on year). An impairment loss of ¥524 million was recorded during the fiscal year. The child seat, roof carrier, and electronic/electrical equipment divisions saw declines in sales, while the chemical products division achieved an increase in sales.

Key Products

Growth Drivers

• Improvement in cost ratio (consolidated cost ratio improved by 2.1 percentage points year on year in FY2025, ended March 2025, due to a decrease in product valuation losses, among other factors)
• Increased sales in the chemical products division (air fresheners, deodorizers, etc. remained robust)
• Expansion of overseas sales (initiatives to increase exports utilizing the U.S. subsidiary and China manufacturing subsidiary)
• Strengthened market introduction of new products and services, and development of new channels and new customers
• Increased sales to major customer Autobacs Seven (¥2,801 million, up ¥47 million year on year)

Risks

• Declining sales trend in child seats, roof carriers, and electronic/electrical equipment divisions (due to the cooling of the outdoor boom)
• Cost pressure from yen depreciation and persistently high raw material prices
• Seasonal fluctuation risk due to dependence on winter products (Q4 performance is significantly affected by the amount of snowfall)
• Risk of recording impairment losses (an impairment loss of ¥524 million was recorded in the Automotive-related Business in FY2025, ended March 2025)
• Impact on overseas business from unstable international conditions and U.S. tariff policy trends

Business Details

Manufactures and sells FLUX brand bindings and other snowboarding-related products, and sells bicycle-related products. Manufacturing is partly handled by Kaimeite Automotive Accessories (Shenzhen) Co., Ltd., while logistics is handled by Carmate Logistics Co., Ltd. Main sales channels are sporting goods stores and e-commerce routes. Winter products account for a high proportion of this segment, resulting in seasonality with sales and costs concentrated in the third quarter. Net sales for the fiscal year under review (FY2025, ended March 2025) were ¥1,504 million, with segment profit of ¥88 million.

Recent Overview

FY2025 saw a decline in sales and a significant drop in profit; the most recent cumulative Q3 has turned to increased sales and a significant increase in profit

In FY2025 (full year, ended March 2025), the flagship snowboarding-related products saw a decline in sales, resulting in net sales of ¥1,504 million (down 4.5% year on year). Due to a worsening cost ratio and an increase in selling, general and administrative expenses, segment profit dropped significantly to ¥88 million (down 35.6% year on year). On the other hand, for the cumulative nine months of Q3 FY2026 (ending March 2026) (April to December 2025), net sales were ¥1,397 million (up 19.8% year on year) and operating income was ¥235 million (up 114.6% year on year), showing a sharp recovery driven by an improved cost ratio and reduced selling, general and administrative expenses. Note that an impairment loss of ¥18 million was recorded in FY2025 (ended March 2025).

Key Products

Growth Drivers

• Improvement in cost ratio in the cumulative nine months of Q3 FY2026 (ending March 2026) (segment profit up 114.6% year on year)
• Improved profitability through reduction of selling, general and administrative expenses (cumulative nine months of Q3 FY2026, ending March 2026)
• Initiatives to expand overseas sales (promoted as a group-wide policy)
• Strengthened market introduction of new products and services, and development of new channels and new customers

Risks

• Seasonality risk due to dependence on winter products (Q4 performance is significantly affected by the amount of snowfall)
• Risk of declining demand due to the maturing snowboard market and cooling of the outdoor boom
• Risk of worsening cost ratio due to persistently high raw material prices and yen depreciation
• Risk of impairment losses occurring (an impairment loss of ¥18 million was recorded in FY2025, ended March 2025)
• Impact on procurement and sales from unstable international conditions and U.S. tariff policy trends