Toei Animation (4816) Q1 2027 earnings summary

Executive summary

• Net sales for the first quarter reached ¥22,033 million, the second highest ever, up 13.1% year-over-year, with operating profit at a record high of ¥7,465 million, driven by strong overseas streaming and merchandising rights sales and a favorable exchange rate.

• Ordinary profit increased 15.4% to ¥8,241 million, and profit attributable to owners of parent rose 15.3% to ¥6,027 million.

• Strategic investments increased SG&A expenses, but profit margins improved due to robust overseas business performance.

• Existing IPs performed well, with new initiatives in Film and Sales of Goods segments contributing to growth.

Financial highlights

• Net sales rose 13.1% year-over-year to ¥22,033 million; operating profit increased 13.5% to ¥7,465 million; ordinary profit was ¥8,241 million, up 15.4% year-over-year.

• Gross profit grew 15.1% year-over-year; net profit climbed 15.3% to ¥6,027 million.

• Comprehensive income for the quarter was ¥6,407 million, up 27.4% year-over-year.

• Basic earnings per share for the quarter were ¥29.50, with diluted EPS at ¥25.57.

• Equity-to-asset ratio remained strong at 84.5% as of June 30, 2026.

Outlook and guidance

• Full-year net sales forecast remains at ¥100,000 million, a 6.8% increase year-over-year, with first quarter progress at 22%.

• Full-year operating profit is projected at ¥25,000 million, down 19.4% year-over-year; profit attributable to owners of parent is forecast at ¥18,100 million, a 27.8% decrease year-over-year.

• Operating profit and net profit are progressing smoothly, with 29.9% and 33.3% of full-year estimates achieved, respectively.

• Basic earnings per share for the full year are expected to be ¥88.56.

• New releases in the second quarter and beyond are expected to drive further growth, but forecasts are retained due to FX and external uncertainties.