Koshidaka Holdings Co (2157) Q4 2025 earnings summary

Executive summary

• Achieved record high sales, operating profit, and ordinary profit for FY8/2025, driven by new store openings and increased customer traffic at existing locations.

• Net sales rose 9.7% year-over-year to ¥69,387 million, with operating profit up 12.1% to ¥11,392 million and ordinary profit up 6.1% to ¥11,598 million.

• Profit attributable to owners of parent declined 21.9% year-over-year to ¥5,258 million, mainly due to a ¥3,400 million impairment loss on unprofitable stores.

• Dividend per share increased to 24 yen, marking the fourth consecutive annual increase and a new all-time high, adjusted for stock splits.

• The company continued aggressive store expansion, opening 50 new karaoke locations in Japan and expanding overseas, while also increasing employee salaries.

Financial highlights

• Total assets increased 11.1% year-over-year to ¥68,588 million, and net assets rose 15.7% to ¥35,105 million.

• Cash and cash equivalents at year-end were ¥10,439 million, up from ¥6,750 million a year earlier.

• Operating cash flow was ¥12,774 million, investing cash flow was negative ¥8,292 million, and financing cash flow was negative ¥791 million.

• Net income per share decreased 22.6% year-over-year to ¥64.01.

• Dividend per share increased to ¥24.00, with a payout ratio of 37.5%.

Outlook and guidance

• FY8/2026 forecast projects net sales of ¥82,544 million (+19.0%), operating profit of ¥12,966 million (+13.8%), and profit attributable to owners of parent between ¥7,500 million and ¥9,493 million (+42.6% to +80.5%).

• Dividend forecast for FY8/2026 is 26 yen per share, up 2 yen from the previous year.

• The Karaoke segment is expected to see a 20.3% sales increase, driven by new store openings and the acquisition of approximately 70 stores from Standard Corp.

• Consolidation of about 70 JOYSOUND stores from Standard Corp. expected to add ¥7,000 million in sales and ¥200 million in operating profit.

• The company aims to achieve ¥100 billion in sales by FY2027 as part of its Entertainment Infrastructure Plan.