Koshidaka Holdings Co (2157) Q3 2024 earnings summary

Executive summary

• Achieved record-high sales and earnings for the first nine months, with net sales up 16.0% year-over-year to ¥46,384 million, operating profit up 18.3% to ¥7,047 million, and ordinary profit up 27.0% to ¥7,801 million, driven by aggressive store openings in Japan and Southeast Asia.

• Profit attributable to owners of parent declined 21.6% year-over-year to ¥5,367 million due to prior year extraordinary income.

• Opened 43 new stores in Japan, focusing on the Kinki region and Tokyo Metropolitan area, and expanded to 22 overseas locations.

• Segment changes were implemented, moving the Bath House business and certain food and beverage stores to the Other segment.

• Accelerated progress toward the Entertainment Infrastructure Plan (EIP), with FY8/2024 revised sales forecast at 96.5% of the FY8/2025 intermediate target.

Financial highlights

• Net sales rose 16.0% year-over-year to ¥46,384 million for the first nine months.

• Operating profit increased 18.3% year-over-year to ¥7,047 million; ordinary profit up 27.0% to ¥7,801 million.

• Gross profit increased to ¥12,083 million from ¥9,976 million year-on-year.

• Net income per share decreased to ¥65.84 from ¥83.94 year-over-year.

• Comprehensive income for the period was ¥5,392 million, down from ¥6,783 million a year earlier.

Outlook and guidance

• Full-year forecast maintained, with net sales expected to reach ¥62,728 million and operating profit ¥9,278 million, up 14.8% and 21.0% year-over-year, respectively.

• Ordinary profit is forecast at ¥9,939 million (+28.0% year-over-year).

• Profit attributable to owners of parent forecasted to decrease 4.9–5.0% year-over-year due to absence of prior year extraordinary income.

• No changes to the upwardly revised forecast announced after the first half.