Koshidaka Holdings Co (2157) Q1 2025 earnings summary

Executive summary

• Net sales rose 14.5% YoY to ¥15,095 million, and operating profit increased 27.1% to ¥728 million, while ordinary profit declined 30.4% to ¥710 million due to lower non-operating income and higher non-operating expenses.

• Profit attributable to owners of parent dropped 40.1% YoY to ¥471 million; comprehensive income for the quarter was ¥550 million, down from ¥742 million a year earlier.

• Achieved profitability in 1Q, traditionally the lowest-earning quarter, with operating profit up YoY despite a decrease in net non-operating income and a shift from FX gains to losses.

• Added 16 karaoke stores (net increase of 13), bringing the total to 677 locations and 18,077 rooms.

• Consolidated forecasts and dividend plans remain unchanged; the company is in the final stage of its Entertainment Infrastructure Plan (EIP) targeting ¥100 billion in sales by FY8/2027.

Financial highlights

• Net sales: ¥15,095 million (+14.5% YoY); operating profit: ¥728 million (+27.1% YoY); ordinary profit: ¥710 million (-30.4% YoY); net income: ¥471 million (-40.1% YoY).

• Net income per share: ¥5.79 (-40.1% YoY).

• Gross profit increased to ¥2,545 million from ¥2,151 million YoY; gross profit margin improved to 16.9% from 16.3% YoY.

• Operating profit margin increased to 4.8% from 4.3% YoY; net margin declined to 3.1% from 6.0% YoY.

• Total assets decreased 2.2% to ¥60,366 million, while net assets rose 2.1% to ¥30,993 million; equity ratio improved to 51.3%.

Outlook and guidance

• FY8/2025 forecast: net sales ¥71,057 million (+12.3% YoY), operating profit ¥11,578 million (+13.9% YoY), ordinary profit ¥11,536 million (+5.5% YoY), net income ¥7,499 million (+11.3% YoY).

• Dividend forecast: interim ¥12, year-end ¥12, total ¥24 per share, unchanged from prior guidance.

• EIP targets for FY8/2027: net sales ¥100 billion, operating profit at least ¥15 billion, payout ratio at least 35%.

• No revisions to previously announced earnings or dividend forecasts.

• Management highlights ongoing geopolitical risks, FX volatility, and plans to accelerate store openings and service diversification.