DREAMBED CO.,LTD.
7791・Standard Market・Other Products
Home Furnishing Business (Single Segment)
A home furnishing specialist engaged in the manufacture and sale of mattresses, sofas, and related products
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥12,174 million | ¥11,509 million | ↑ |
| Operating Income | ¥703 million | ¥595 million | ↑ |
| Ordinary Income | ¥686 million | ¥583 million | ↑ |
| Net Income | ¥479 million | ¥415 million | ↑ |
| EBITDA (Operating Income + Depreciation) | ¥1,111 million | ¥944 million | ↑ |
| Operating Margin | 5.8% | 5.2% | ↑ |
| ROE | 10.3% | 9.5% | ↑ |
| Equity Ratio | 42.1% | 40.0% | ↑ |
| Net Assets per Share | ¥1,193.01 | ¥1,100.75 | ↑ |
| Earnings per Share | ¥116.92 | ¥101.52 | ↑ |
| Annual Dividend | ¥36.00 (including a ¥2 commemorative dividend for the 75th anniversary of founding) | ¥33.00 | ↑ |
| Dividend Payout Ratio | 30.8% | 32.5% | ↓ |
| Cash Flow from Operating Activities | ¥110 million | ¥481 million | ↓ |
| Cash and Cash Equivalents at End of Period | ¥599 million | ¥747 million | ↓ |
| Total Assets | ¥11,513 million | ¥11,267 million | ↑ |
Business Details
A single-segment company engaged in the design development, manufacturing, and sale of mattresses, bed frames, sofas, bedding products, and related items. The company pursues a multi-brand strategy combining its own brand (dream bed) with overseas partner brands (Serta, ligne roset, KING KOIL). Its main channels are furniture retailers (net sales of ¥8,503 million), commercial facilities (¥1,803 million), shops/showrooms (¥1,702 million), and other (¥165 million), with domestic production at its own factory in Hiroshima serving as a key strength.
Recent Overview
FY2026 (ending March 2026) achieved higher sales and profits, with the new KING KOIL brand and overseas exports moving into full operation
In FY2026 (ending March 2026), the company achieved higher sales and profits, with net sales of ¥12,174 million (up 5.8% year on year) and operating income of ¥703 million (up 18.1% year on year). By channel, sales increased across the board: furniture retailers ¥8,503 million (up ¥80 million), commercial facilities ¥1,803 million (up ¥331 million), shops/showrooms ¥1,702 million (up ¥199 million), and other ¥165 million (up ¥56 million). Despite active human capital investment and increased selling expenses, these were absorbed by the sales growth. On the other hand, operating cash flow declined significantly to ¥110 million (from ¥481 million in the prior period) due to a decrease in accounts payable (¥408 million) and increased corporate tax payments (¥197 million). Capital expenditures related to core system migration and other projects expanded (total acquisitions of tangible and intangible fixed assets of ¥576 million), financed through a net increase in short-term borrowings of ¥424 million and long-term borrowings of ¥300 million. Forecasts for FY2027 (ending March 2027) call for net sales of ¥12,500 million, operating income of ¥740 million, and net income of ¥490 million.
Key Products
Growth Drivers
- Continued high hotel occupancy rates driven by expanding inbound tourism demand, along with robust investment demand for mattress renewals and new projects (commercial facility sales up ¥331 million year on year)
- Strengthening of the multi-brand strategy through accelerated full-scale rollout of the new KING KOIL brand (department store pop-ups, display introductions at major furniture retailers, new hotel adoptions)
- Expansion of new overseas revenue sources through full-scale OEM exports to Southeast Asia (Indonesia, Malaysia) and China
- Expansion of direct sales channel revenue through the expansion of shops/showrooms (Tokyo showroom expansion, Roset Shinjuku store expansion renovation) and stronger corporate client outreach
- Improved average customer spending and profitability through the launch of the ligne roset high-end new model (Roset Kashima) and expansion of direct e-commerce
- Improved cost structure through factory DX initiatives such as AI camera process monitoring, restructuring of the distribution network, and inventory optimization (CCC improvement)
- Enhanced shareholder returns and improved market valuation through ROE improvement, flexible share buybacks, and stable dividend increases aimed at achieving a PBR of 1.0x or above
Risks
- Risk of declining sales in the mainstay furniture retailer channel (net sales of ¥8,503 million, approximately 70% of the total) due to deteriorating footfall trends
- Risk of margin decline due to active human capital investment and increased selling expenses (SG&A expenses of ¥5,667 million) (operating income in the first half of FY2026, ending March 2026, decreased 16.6% year on year)
- Cost pressure from rising interest rates, yen depreciation, and higher raw material prices (interest-bearing debt balance: short-term borrowings of ¥2,520 million plus long-term borrowings of ¥1,900 million)
- Increased financial burden and liquidity risk from expanded capital expenditures such as core system migration (investing cash flow of ¥586 million) and increased borrowings
- Brand portfolio risk stemming from dependence on licensing agreements with overseas partner brands (Serta, ligne roset, KING KOIL, etc.)
- Intensifying competition due to shrinking domestic demand from the declining birthrate and aging population, and the rise of specialty store retailers of private-label apparel (SPA)-style manufacturing retailers
- Geopolitical risk, foreign exchange risk, and counterparty credit risk associated with overseas OEM exports (Indonesia, Malaysia, China)
Last updated: June 24, 2026