Fujita Kanko (9722) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 3.5% year-over-year to ¥19,424 million, driven by higher ADR, inbound demand, and strong wedding business.

• Operating profit declined by ¥367 million year-over-year (down 12.5%) to ¥2,586 million due to higher labor costs, wage raises, and increased renovation expenses.

• Ordinary profit decreased 15.4% year-over-year to ¥2,116 million.

• Profit attributable to owners of parent surged 228.7% to ¥5,346 million, driven by extraordinary income from the sale of investment securities.

• Comprehensive income for Q1 2026 was ¥3,588 million, up from ¥2,121 million in Q1 2025.

Financial highlights

• Net sales: ¥19,424 million (up ¥659 million YoY).

• Operating profit: ¥2,586 million (down ¥367 million YoY).

• Ordinary profit: ¥2,116 million (down ¥383 million YoY).

• Extraordinary income of ¥5,999 million from the sale of investment securities significantly boosted net profit.

• Equity ratio improved to 40.4% from 37.3% at the end of the previous year.

Outlook and guidance

• Full-year 2026 net sales forecast at ¥83,000 million, up 1.2% year-over-year.

• Operating profit for 2026 expected to decline 13.0% to ¥11,600 million, with profit attributable to owners of parent forecast to rise 23.8% to ¥11,500 million.

• Continued focus on capturing inbound demand and enhancing product competitiveness through renovations and alliances.

• Annual dividend forecast for 2026 is ¥70.00 per share.

• Ongoing renovations and business alliances expected to support future growth and operational improvements.