DREAMBED CO.,LTD.
7791・Standard Market・Other Products
Business
Founded in 1957 and originating in Hiroshima Prefecture, dream bed Co., Ltd. is a home furnishing specialist manufacturer that handles everything from design and development to manufacturing and sales of mattresses, bed frames, sofas, bedding, and related products. In addition to its own brand, dream bed, the company holds exclusive licenses for the US brands Serta and KING KOIL, France's ligne roset, and Germany's ruf, pursuing a multi-brand strategy. Sales channels are organized around three pillars: furniture retailers (69.8% of net sales), commercial facilities (14.8%), and shops/showrooms (14.0%), serving a wide range of customers from general consumers to hotels and commercial facilities nationwide.
Business Model
The company manufactures high-quality products under ISO9001 certification at its own factory in Hiroshima Prefecture, achieving both reduced import costs through licensed production of overseas brands and customization for Japanese specifications. Revenue is derived from three channels: wholesale sales to furniture retailers, direct sales to commercial facilities such as hotels, and directly operated store sales including ligne roset shops. The make-to-order production system keeps inventory levels compressed while achieving shipment within approximately one week. The structure allows the brand image of each channel to mutually reinforce one another.
Company Strengths
The company holds exclusive licenses for four brands in Japan: Serta (contract signed in 1978, valid through the end of 2029), ligne roset (contracts signed in 1981 and 1997), ruf (re-signed in 2007), and KING KOIL (contract signed in November 2024, valid through the end of 2029). In particular, the company is currently the only licensee approved for ligne roset production, forming an entry barrier that is difficult for competitors to replicate in a short period.
The company's own factory in Hiroshima Prefecture has obtained ISO9001 certification and holds the hygiene mark display qualification certified by the Japan Bedding Industry Association. The company has developed proprietary manufacturing machinery that combines 7 types of steel wire diameters and 3 types of shapes and arrangement methods, establishing a made-to-order production system that achieves shipment within approximately one week of order receipt. In January 2024, a new sewing completion building began operations, strengthening production capacity.
The company operates through three channels: furniture retailers (net sales of ¥8,503 million), commercial facilities (¥1,803 million), and shops/showrooms (¥1,702 million). Adoption by luxury hotels enhances brand image, creating a ripple effect that strengthens consumer appeal at furniture retailers. In FY2026 (ending March 2026), net sales increased across all channels, confirming the synergistic effects between channels as an actual result.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods (FY2022–FY2026) trended as follows: ¥9,452 million → ¥9,835 million → ¥9,709 million → ¥11,509 million → ¥12,174 million. After a temporary decline in FY2024 (ending March 2024), revenue staged a sharp V-shaped recovery in FY2025 (ending March 2025), and growth continued in FY2026 (ending March 2026) with a +5.8% year-on-year increase. Operating profit moved as follows: ¥648 million → ¥427 million → ¥191 million → ¥595 million → ¥703 million, reaching its highest level over the past five fiscal periods in FY2026 (ending March 2026). The operating profit margin improved to 5.8% (from 5.2% in the prior period). As an external factor, sustained high hotel occupancy rates driven by expanding inbound demand supported growth in Bed & Interior Production for Commercial Facilities (+¥331 million). Meanwhile, increased investment in human capital and higher selling expenses were absorbed by revenue growth, with the SG&A ratio slightly improving to 46.5% (from 47.0% in the prior period). It should be noted that operating cash flow fell sharply to ¥110 million due to a change in the structure of trade payables (the elimination of notes payable and electronically recorded obligations).
Growth Strategy
Advancing the new medium-term plan around four pillars: multi-brand expansion, deepening of the commercial facility business, full-scale overseas OEM development, and improvement in capital efficiency
The company began rolling out KING KOIL, its first new brand in approximately 40 years, from October 2025. Progress has been favorable, including department store pop-ups, displays introduced at major furniture retailers, and new adoption by hotels. In FY2027 (ending March 2027), the company will promote higher value-added positioning through the introduction of the Serta 95th anniversary commemorative model and redefinition of its proprietary brands, aiming to maintain and strengthen the existing bed business and generate stable cash flow.
Against a backdrop of recovering inbound demand and solid renewal demand, sales to hotels and other commercial facilities reached ¥1,803 million in FY2026 (ending March 2026) (up ¥331 million year on year), with robust order-taking continuing. In FY2027 (ending March 2027), in addition to Serta, the company will strengthen new introductions of the KING KOIL brand to major chain hotels and enhance proposals for higher value-added products, aiming to further expand the commercial facility channel.
Since Q2 of FY2026 (ending March 2026), the company began full-scale exports to Indonesia and Malaysia, and also conducted trial exports to China. This contributed ¥165 million (up ¥56 million year on year) to sales in the Other Channels category in FY2026 (ending March 2026). In FY2027 (ending March 2027), the policy is to establish a product supply framework for Southeast Asia and China and move forward in earnest with global expansion.
The company is promoting factory DX, including process monitoring using AI cameras, to reduce manufacturing costs and improve quality stability. It also aims to improve asset efficiency through restructuring of its nationwide delivery network and optimization of inventory in line with sales trends (CCC improvement). Investment in core system migration and other initiatives (intangible fixed assets/software: +¥231 million) has already been implemented in FY2026 (ending March 2026).
The company has set a goal of achieving a PBR of 1.0x or above at an early stage, and is promoting ROE improvement (10.3% in FY2026, ending March 2026), agile share buybacks (¥53 million executed in FY2026, ending March 2026), and stable dividend increases (annual dividend of ¥36 in FY2026, ending March 2026, including a ¥2 commemorative dividend for the company's 75th founding anniversary). The projected dividend for FY2027 (ending March 2027) is ¥37 (payout ratio of 30.7%), continuing the policy of dividend increases.
Last updated: July 19, 2026