Takara Tomy Co. reported a 67% jump in annual profit as the Japanese toymaker successfully expanded its customer base beyond children to adult collectors, though the company expects earnings to decline in the current fiscal year.
Net income rose to ¥16.35 billion ($113 million) for the year ended March 31, while sales increased 20% to ¥250.2 billion ($1.73 billion), the Tokyo-based company said Monday. Operating profit climbed 32% to ¥24.87 billion ($172 million).
The robust performance was driven by strong sales in Japan and Asia, with the company citing success in targeting the “Kidult” market – adults who purchase toys typically aimed at children. Premium versions of its classic Tomica toy cars and Plarail train sets proved popular with older consumers.
Takara Tomy expanded its trading card game business with new offerings including Detective Conan Card Game and Disney Lorcana. The company also opened its first overseas Tomica brand store in Shanghai.
Despite the strong results, the toymaker projects net profit will fall 14% to ¥14 billion ($97 million) in fiscal 2026, with operating profit declining 12% to ¥22 billion ($152 million), even as sales are expected to increase 4% to ¥260 billion ($1.79 billion).
The forecast suggests the company may face challenges maintaining its profit margins after this year’s exceptional growth, potentially due to increased competition or rising costs.
