Daiichikosho (7458 ) Q4 2025 earnings summary

Executive summary

• Net sales reached a record ¥153,020 million, up 4.3% year-over-year, and net income attributable to parent company shareholders surged 44.6% due to extraordinary profit and deferred tax assets from business recovery.

• Operating profit declined 3.5% year-over-year to ¥17,945 million, impacted by higher base pay, personnel, and proactive investments, while EBITDA rose 3.3%.

• Comprehensive income rose 41.8% to ¥18,828 million.

• The number of DAM karaoke units in operation increased by 1% year-over-year, and the parking business expanded facilities and spots.

Financial highlights

• Net sales: ¥153,020 million (+4.3% year-over-year).

• Operating profit: ¥17,945 million (-3.5% year-over-year).

• Net income attributable to parent company shareholders: ¥18,178 million (+44.6% year-over-year).

• Shareholders’ equity ratio increased to 55.6% (+4.6 pts year-over-year).

• Free cash flow improved significantly to ¥13,210 million from negative ¥29,115 million the previous year.

• Gross profit increased to ¥53,757 million from ¥52,602 million year-over-year.

• Basic earnings per share rose to ¥172.56 from ¥117.01 year-over-year.

• Net assets per share increased to ¥1,113.36 from ¥1,006.80.

• Cash and cash equivalents at year-end were ¥41,584 million, down from ¥49,306 million.

Outlook and guidance

• FY ending March 2026 net sales forecast: ¥162,700 million (+6.3% year-over-year).

• Operating profit forecast: ¥18,000 million (+0.3% year-over-year); net income forecast: ¥13,000 million (-28.5% year-over-year due to absence of extraordinary gains).

• Launch of new product LIVE DAM WAO! expected to drive sales, but increased capital investment and promotional expenses will keep operating profit flat.

• Continued focus on expanding commercial karaoke and parking businesses, and enhancing brand value.

• Economic uncertainty expected due to geopolitical risks and commodity price hikes.