Kotobukiya Co., the Japanese maker of anime figures and model kits, reported a sharp decline in first-half profit as competition in its core plastic model business intensified and new product releases were delayed.
Net income fell 53% to ¥138 million ($920,000) in the six months through December, while sales dropped 8.4% to ¥6.75 billion, the Tokyo-based company said Wednesday. Operating profit declined 51% to ¥226 million.
The company struggled with slower sales of its signature plastic model kits and figurines despite launching new products like the “Sophiera” from its original “Arcanadia” series and collaboration items with the “GaoGaiGar FINAL” franchise. Revenue from the figure segment also weakened due to fewer hit products compared to the previous year.
Retail sales at directly operated stores showed some bright spots, supported by steady demand for VTuber-related merchandise and a continued influx of foreign tourists. However, this wasn’t enough to offset broader weakness.
In North America, Kotobukiya’s promotional efforts at major events like Anime Expo 2024 and San Diego Comic-Con failed to boost sales significantly. The company cited challenges in meeting local customer preferences with its product lineup.
Looking ahead, Kotobukiya forecasts a recovery with full-year net income rising 4.6% to ¥1.15 billion on sales of ¥17 billion, up 3.8%. The company is banking on a concentrated release schedule of new products in the second half to achieve these targets, though it has only reached 12% of its annual profit goal halfway through the fiscal year.
