BUNKYODO GROUP HOLDINGS CO.,LTD.

Business Details

Bunkyodo Group Holdings Co., Ltd. is composed of the "Sales Business," which mainly retails books, magazines, stationery, and sundries; the "Real Estate Leasing Business," which provides a stable source of income from real estate rental revenue; and the "Education Platform Business (Other)," which operates programming schools and similar offerings. Following the establishment of a business revitalization ADR (Alternative Dispute Resolution) procedure in September 2019, the company has continued structural reforms including closure of unprofitable stores, cost reductions, and expansion of stationery and sundries offerings. Based on a three-year medium-term plan starting from FY2026 (ending August 2026), the company aims to preserve "neighborhood bookstores" and achieve a sustainable corporate group.

Recent Overview

Cumulative 3Q results improved year on year in both sales and profit, driven by stationery and trading cards

For the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), net sales were ¥11,281 million (up 0.6% year on year), operating income was ¥98 million (up 42.1% year on year), ordinary income was ¥47 million (up 15.4% year on year), and quarterly net income attributable to owners of parent was ¥37 million (up 31.1% year on year). The stationery, sundries, and trading card segments performed well, offsetting the decline in sales from the closure of unprofitable stores. Interest expenses increased to ¥59 million compared with the same period of the prior year. There is no revision to the full-year earnings forecast (net sales of ¥14,000 million, operating income of ¥40 million). As of the end of the third quarter, a total of seven trading card specialty sales floors were in operation. Four stores are scheduled to close between April and June 2026, with two more stores to close in July.

Key Products

Growth Drivers

• Stable sales contribution from the stationery and sundries segment continuing to exceed the same month of the prior year
• Expansion of trading card specialty sales floors (seven stores in total) and new customer acquisition and sales growth through collaboration with Suruga-ya
• Capturing experiential consumption demand through the favorable performance of "Honya-san no Gashapon no Depaato"
• Improved gross margin through increased book procurement from Booksellers & Company and expansion of outright-purchase magazine sales
• Synergy creation through the fusion of the education platform business, such as Gakken Nou Genki Salon, with the sales business
• Ongoing improvement of the earnings structure through continued closure of unprofitable stores and expansion, relocation, and renovation of existing stores
• Creation of a new revenue pillar centered on franchise participation in recycle shops

Risks

• Material uncertainty regarding the going concern assumption (agreement with financial institutions not yet reached on a long-term basis)
• Structural contraction of the paper publishing market (decline in the number of bookstores, high return rates, and continued weakness in the magazine and comic markets)
• Increased personnel expenses due to minimum wage hikes, and rising selling, general and administrative expenses such as logistics costs and rent
• Risk of rising utility costs due to surging energy prices
• Delayed recovery in personal consumption and declining store visitor numbers due to stagnant real wage growth
• Slowdown in student acquisition in the education platform business amid rising prices
• Deterioration of the business environment due to geopolitical risks such as concerns over a slowdown in overseas economies and instability in the Middle East