Kyoritsu Maintenance (9616) Q1 2025 earnings summary

Executive summary

• Net sales rose 11.5% year-over-year to ¥52.0 billion for Q1 FY3/25, with operating income up 31.2% to ¥3.8 billion and net income up 54.1% to ¥2.6 billion.

• Growth was driven by strong performance in hotel and dormitory segments, supported by increased occupancy, higher room rates, and strong inbound tourism.

• Equity in earnings of affiliated companies contributed ¥430 million due to the acquisition of COSMOS INITIA Co., Ltd.

• Dormitory business expanded with eight new facilities, though occupancy dipped slightly; cost controls and price optimization supported income.

Financial highlights

• EPS increased 54.0% year-over-year to ¥34.6, reflecting a two-for-one stock split effective April 1, 2024.

• Depreciation and amortization for Q1 was ¥1.76 billion, up from ¥1.58 billion year-over-year.

• Capital investment surged 446.4% to ¥4.4 billion, reflecting expansion and renewal projects.

• Cash flow (net income + depreciation) reached ¥3.3 billion.

• Comprehensive income increased to ¥3,123 million, up 86.9% year-over-year.

Outlook and guidance

• Full-year forecast maintained: net sales ¥226,000 million (+10.7% YoY), operating income ¥18,500 million (+10.7%), net income attributable to owners of parent ¥12,500 million (+0.7%), EPS ¥160.20.

• No changes to previously announced earnings or dividend forecasts.

• Management notes that actual results may differ significantly from forecasts due to various factors and that information is subject to change without notice.