ECHO TRADING CO.,LTD.
7427・Standard Market・Wholesale Trade
ECHO TRADING CO.,LTD. (Pet-related Business, Single Segment)
A domestic specialist single-segment company centered on pet food and pet supplies wholesale
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Cumulative Q1, FY2027 ending February 2027) | ¥27,285 million | ¥26,508 million (same period prior year) | ↑ |
| Operating profit (Cumulative Q1, FY2027 ending February 2027) | ¥8 million | ¥206 million (same period prior year) | ↓ |
| Ordinary profit (Cumulative Q1, FY2027 ending February 2027) | ¥7 million | ¥207 million (same period prior year) | ↓ |
| Quarterly net profit attributable to owners of parent (Cumulative Q1, FY2027 ending February 2027) | △¥6 million | ¥131 million (same period prior year) | ↓ |
| Operating margin (Cumulative Q1, FY2027 ending February 2027) | 0.03% | 0.78% (same period prior year) | ↓ |
| Total assets (End of Q1, FY2027 ending February 2027) | ¥43,769 million | ¥38,899 million (end of FY2026 ending February 2026) | ↑ |
| Net assets (End of Q1, FY2027 ending February 2027) | ¥12,008 million | ¥12,178 million (end of FY2026 ending February 2026) | ↓ |
| Equity ratio (End of Q1, FY2027 ending February 2027) | 27.4% | 31.3% (end of FY2026 ending February 2026) | ↓ |
| Quarterly net profit per share (Cumulative Q1, FY2027 ending February 2027) | ¥1.03 | ¥21.78 (same period prior year) | ↓ |
| Full-year net sales forecast (FY2027 ending February 2027) | ¥110,000 million | ¥105,811 million (FY2026 ending February 2026 actual) | ↑ |
| Full-year operating profit forecast (FY2027 ending February 2027) | ¥1,150 million | ¥1,110 million (FY2026 ending February 2026 actual) | ↑ |
Business Details
The Group operates primarily in the wholesale business of pet food and pet supplies, alongside product development (Pets Value Co., Ltd. and I&I Co., Ltd.), the Event Business, and pet-related education business. Its main customers are domestic pet shops and retailers, and its competitive advantage lies in its proposal capability to deliver the "value" of products developed by manufacturers to the market. Starting from FY2027 (ending February 2027), the Group has launched a new medium-term management plan, updating its growth strategy concept "CED" by adding Connect and Data Science. All revenue is generated domestically.
Recent Overview
Net sales rebounded to a 2.9% year-on-year increase, but operating profit plunged 96.1% to ¥8 million due to rising costs
Net sales for the first quarter of FY2027 (ending February 2027) (March–May 2026) were ¥27,285 million (up 2.9% year on year), reversing the declining trend seen through the prior fiscal year. However, due to continued rises in logistics costs and partial changes in transaction terms with certain business partners, gross profit decreased to ¥2,778 million (from ¥2,895 million in the same period of the prior year). After deducting SG&A expenses of ¥2,770 million, operating profit sharply declined to ¥8 million (from ¥206 million in the same period of the prior year). Quarterly net loss attributable to owners of parent was ¥6 million. On the balance sheet, short-term borrowings increased from ¥1,650 million to ¥3,625 million, and the equity ratio declined from 31.3% to 27.4%. The full-year earnings forecast (net sales of ¥110,000 million, operating profit of ¥1,150 million) remains unchanged.
Key Products
Growth Drivers
- Expanding spending on high-value-added products and related services driven by the ongoing humanization of pets
- Continued growth in demand for cat food (the largest category by sales composition)
- Deepening of value-proposition-based sales approach based on the CED strategy (Communication/Connect, Education/Entertainment, Design, Data Science)
- Strengthening the production of safety, security, nutrition, and health value using the company's proprietary data analysis platform
- Improved competitive advantage through integrated development and promotion functions resulting from consolidating product development into I&I Co., Ltd.
- Expansion into the wellness market through new brand rollouts, including the relaunch of "GOODISH" (planned for autumn 2026)
- Expansion into a new category driven by increased sales of "Magokoro Gohan" under the ShareZ brand
Risks
- Decline in sales volume due to increasing thrift consciousness among consumers amid rising prices
- Deterioration of profit margins due to rising labor costs, logistics costs, and raw material costs (materialized in the first quarter)
- Impact on the revenue structure due to changes in transaction terms with certain business partners
- Market contraction pressure from the continued decline in the number of dogs kept as pets
- Decline in gross profit margin due to intensifying price competition within the industry
- External environmental risks such as US trade policy, Middle East conditions, and fluctuations in financial and capital markets
- Increased financial leverage risk associated with the rise in short-term borrowings (from ¥1,650 million to ¥3,625 million)
Last updated: May 26, 2026