CERESPO CO., LTD.

Business Details

The company operates a comprehensive event contracting business as its single business segment. It comprises three divisions: the Base Business division (diverse event areas handled by each sales office), the Sports Business division (sports and competition-related events hosted by central sports federations and similar organizations), and the Royal Event Business division (nationwide rotating events centered on events attended by the Imperial family). The company undertakes planning, venue setup, production and progress management, and operations on an integrated basis, with strengths in its nationwide branch network and on-site responsiveness.

Recent Overview

FY2026 (ending March 2026) saw increased revenue and profit with a return to net profitability, as the antitrust-related provision decreased substantially.

In FY2026 (ending March 2026), the company achieved net sales of ¥15,138 million (up 10.8% year-on-year) and operating profit of ¥1,083 million (up 35.5% year-on-year). Net income for the period turned positive at ¥766 million, a rebound from the prior year when the company recorded a ¥1,303 million extraordinary loss related to an antitrust law provision. The balance of this provision decreased substantially from ¥1,303 million to ¥140 million. In investing activities, the company deposited ¥2,000 million into time deposits, resulting in a decrease of ¥2,294 million in cash and cash equivalents. For FY2027 (ending March 2027), the company plans to hold events nationwide to commemorate its 50th anniversary, forecasting net sales of ¥15,500 million (up 2.4% year-on-year), while projecting operating profit to decline to ¥1,000 million (down 7.7% year-on-year). The dividend is planned to increase from ¥40 in the current period to ¥50 in the next period (an ordinary dividend of ¥40 plus a commemorative special dividend of ¥10).

Key Products

Growth Drivers

• Increase in per-project unit prices due to international event hosting (Base Business division)
• Increase in the number of projects and per-project unit prices for sports and competition events (Sports Business division)
• Recovery in personal consumption and event hosting driven by improvements in employment and income conditions
• Thorough management at each branch location and strengthened human resource development aimed at rebuilding the business foundation
• Revenue contribution from nationwide events commemorating the company's 50th anniversary (FY2027, ending March 2027)

Risks

• Risk of increased costs due to rising material prices and labor costs, among other factors (SG&A expenses increased by ¥530 million year-on-year)
• Contingent liabilities related to suspected violations of the Antimonopoly Act (reasonable estimation of the impact is difficult)
• Risk of additional losses related to the ¥140 million antitrust-related loss provision remaining in fixed liabilities
• Risk of fluctuation in the scope of large-scale project orders received in the Royal Event Business division (revenue decreased 8.0% in the current period)
• Macroeconomic uncertainty, including concerns over U.S. trade policy and the situation in the Middle East
• Decline in on-hand liquidity due to a ¥2,000 million deposit into time deposits (cash equivalents of ¥4,499 million)