LEC,INC.
7874・Prime Market・Chemicals
Daily Sundries & Apparel Business
REC's sole business segment, engaged in the planning, manufacturing, and sale of daily necessities
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥68,294 million | ¥66,304 million | ↑ |
| Operating profit | ¥4,136 million | ¥2,780 million | ↑ |
| Operating profit margin | 6.1% | 4.2% | ↑ |
| Ordinary profit | ¥4,429 million | ¥3,074 million | ↑ |
| Profit attributable to owners of parent | ¥2,978 million | ¥1,667 million | ↑ |
| Gross profit | ¥20,688 million | ¥17,426 million | ↑ |
| Equity ratio | 40.0% | 38.7% | ↑ |
| Earnings per share | ¥91.22 | ¥50.92 | ↑ |
| Cash flow from operating activities | ¥9,030 million | ¥4,213 million | ↑ |
| Cash and cash equivalents at end of period | ¥24,178 million | ¥13,708 million | ↑ |
Business Details
The Group operates in a single segment, the "Daily Sundries & Apparel Business," primarily consisting of the planning, manufacturing, and sale of daily necessities. It is composed of three product categories: Household Sundries (plastic, metal, and textile products, etc.), Cleaning & Sanitary Consumables (paper- and urethane-based cleaning consumables, various detergents, etc.), and Others (Drinks, Cosmetics, Home Appliances, etc.) (pest and virus countermeasure products, cosmetics, home appliances, food, drinks, etc.). Sales to 100-yen shops and mass merchandisers form the core of the business.
Recent Overview
Achieved increased sales and substantially higher profit, with operating profit up 48.8% year on year to ¥4,136 million
In FY2026 (ending March 2026), the company achieved net sales of ¥68,294 million (up 3.0% year on year) and operating profit of ¥4,136 million (up 48.8% year on year). Growth in sales of new character-related products drove the sales increase, and improved sales mix through product line rationalization together with thorough cost reductions led to a ¥1,273 million decrease in cost of sales year on year (from ¥48,878 million to ¥47,605 million), substantially improving the gross profit margin from 26.3% to 30.3%. In addition, the provisional accounting treatment for the drink products business acquired in June 2024 was finalized in the first quarter, reducing the recorded goodwill amount by ¥1,556 million to ¥1,243 million. For the following fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥70,500 million (up 3.2%) and operating profit of ¥4,200 million (up 1.5%).
Key Products
Growth Drivers
- Growth in sales of new character-related products (hobby/interest-oriented products such as fan merchandise)
- Improved sales mix through product line rationalization and higher gross profit margin (26.3% → 30.3%)
- Contribution from the "Gronsan" and "Gromont" drink products business acquired from Lion Corporation
- Business expansion through active sales promotion activities such as TV commercials and new product launch events
- Improved productivity and profit margins through cost reduction and workflow review
- Challenging new business areas and developing high value-added new products
Risks
- Continued high procurement costs due to rising raw material prices and yen depreciation
- Intensifying competition in the daily necessities market amid continued consumer thrift orientation
- Risk of sales concentration in specific customers such as 100-yen shops
- Supply chain impact from geopolitical risks such as U.S. trade policy and China's economic slowdown
- Risk of further surges in energy and raw material prices due to worsening conditions in the Middle East
- Continued rise in various expenses including transportation costs
Last updated: June 24, 2026