Koshidaka Holdings Co (2157) Q4 2024 earnings summary

Executive summary

• Achieved record high operating and ordinary profit, both exceeding 10 billion yen, with operating profit up 32.6% year-over-year (YoY).

• Karaoke segment drove growth with sales up 18.0% and operating profit up 26.9% YoY, supported by new store openings and increased customer numbers.

• Profit attributable to owners of parent decreased 5.2% YoY to 6,735 million yen due to the absence of prior year extraordinary income.

• Dividend per share increased for the third consecutive year, reaching an all-time high of 18 yen annually.

• The Other segment posted a significant sales decline (down 40.9%) and a segment loss due to the closure of the main bath house facility.

Financial highlights

• Net sales rose 15.8% YoY to 63,263 million yen, and operating profit increased 32.6% to 10,164 million yen.

• Ordinary profit grew 40.8% YoY to 10,934 million yen.

• Gross profit increased to 16,753 million yen from 13,308 million yen YoY.

• Net assets rose 19.5% to 30,354 million yen, and the equity ratio improved to 49.2%.

• Cash and cash equivalents at year-end were 6,750 million yen, down from 7,854 million yen the prior year.

Outlook and guidance

• FY8/2025 forecast: Net sales to rise 12.3% to 71,057 million yen, operating profit to increase 13.9% to 11,578 million yen, and net income per share to reach 92.65 yen.

• Plans to pay a full-year dividend of 24 yen per share in FY8/2025.

• Karaoke segment sales are projected to grow 12.2% and segment profit 11.2% in FY2025.

• Real Estate Management segment expects a 19.9% sales increase and 144% profit growth.

• EIP (Entertainment Infrastructure Plan) targets 100 billion yen in sales by FY8/2027, with FY8/2025 sales expected to exceed the intermediate goal by 12%.