CROPS CORPORATION

Business Details

The mobile communications business operated directly by Crops Corporation. It operates "au Shop/au Style", which exclusively sells KDDI's au products, and "UQ Spot", which exclusively sells UQ Mobile products, across multiple prefectures. With mobile device sales as its core, the business generates revenue from line commissions, work-related fees, and other sources. Its main customer is KDDI Corporation. The company strengthened external sales activities targeting commercial facilities for its consumer business, and also opened 10 newly acquired stores through M&A starting in March.

Recent Overview

Acquired 10 stores via M&A; revenue and profit increased significantly on stronger external sales.

In the full year of FY2026 (ending March 2026), the consumer business saw steady growth in device sales due to strengthened external sales activities targeting commercial facilities, with enhanced accessory sales also contributing to increased sales revenue. Starting in March, the company acquired via M&A the au Shop operations that had been entrusted to Toyota Mobility Parts Corporation and the au Shop/UQ Spot operations of Sabusuku Co., Ltd., newly opening 10 stores. While absorbing the store-opening preparation costs, the company achieved revenue of ¥29,585 million (up 6.7% year on year) and segment profit of ¥826 million (up 88.9% year on year). Goodwill recognized in connection with the M&A stood at ¥721 million at fiscal year-end.

Key Products

Growth Drivers

• Increased device sales through strengthened external sales activities targeting commercial facilities in the consumer business
• Increased sales revenue through enhanced accessory sales
• Store count expansion through M&A (acquired 10 stores in March 2026)
• Acquisition of large-scale device replacement deals by the corporate sales division
• Stable demand as mobile phones become a daily necessity as communication infrastructure

Risks

• Profit margin pressure from store-opening preparation costs and integration costs for M&A-acquired stores
• Profit margin pressure from increased store operating costs such as sales promotion expenses and personnel costs
• Risk of changes in the mobile phone sales market environment due to policy changes by the carrier (KDDI)
• Continued occurrence of impairment losses related to closed stores (¥12 million in FY2026 (ending March 2026))
• Risk of revenue concentration in KDDI Corporation
• Risk of future impairment related to M&A goodwill (¥721 million)