PRINTNET INC.

Business Details

The company operates three sites—PRINTNET, PRINT PRO, and PRINTNET WARE—receiving orders via the web for a wide range of printed materials such as brochures, flyers, envelopes, and T-shirts, and producing and shipping directly from its factories. Customers are primarily BtoB (printing companies, design companies), with a high proportion of Fulfillment Service revenue. The company's proprietary "ganging" process reduces the number of printing plates required, securing cost competitiveness. It has also obtained Japan Color standard printing certification (obtained in 2012) to ensure stable quality.

Recent Overview

Although sales to major customers declined, sales to non-major customers increased; segment profit rose year on year under the profit-margin-focused policy.

In the cumulative nine-month period of Q3 FY2026 (ending March 2026) (September 2025 to May 2026), sales in the Online Printing Mail-Order Business were ¥6,832 million (down ¥11 million year on year). While printing sales to major customers decreased by ¥146 million year on year, sales to non-major customers increased by ¥149 million, resulting in a slight increase in total printing sales. Under the continued policy of prioritizing profit margin, segment profit improved to ¥627 million (up ¥38 million year on year). The number of new customers acquired was 9,428, down 1,021 year on year, and the advertising cost per acquisition rose to ¥7,574. Construction in progress surged to ¥1,026 million, suggesting that investment toward the planned second Kyushu factory (tentative name) is underway.

Key Products

Growth Drivers

• Improved profit margin driven by an increase in printing sales to non-major customers (general BtoB/BtoC) (up ¥149 million year on year)
• Expansion of production capacity through the planned second Kyushu factory (tentative name), based on the medium-term management plan (through FY2030 (ending August 2030))
• Improved profit margin from in-house production of previously outsourced work and material cost reduction effects
• Enhanced recognition among peers through active participation in exhibitions such as DXPO, and promotion of a platform serving both BtoB and BtoC customers
• Establishment of a position as a contract printing provider for small and medium-sized printing companies nationwide (building win-win relationships)
• Stabilization of the competitive environment through continued expansion of the printing mail-order market and progressing oligopolization among a handful of leading players

Risks

• Risk of continued decline in sales to major customers (Raksul Inc. and others) (down ¥146 million year on year in the cumulative nine months of Q3)
• Decline in the number of new customers acquired (down 1,021 year on year) and deteriorating customer acquisition efficiency due to rising advertising cost per acquisition
• Risk of deteriorating cost ratio due to soaring prices of raw materials such as paper and ink, as well as rising utility and logistics costs
• Intensifying price competition in the printing mail-order industry and competition with peers
• Rising costs of imported raw materials due to the continued weak yen
• Long-term structural decline in demand for paper media (progress of digitalization)
• Increased capital investment burden associated with the expansion of the second Kyushu factory and financial burden from a sharp increase in short-term borrowings (up ¥973 million from the end of the prior fiscal year)