Kotobuki Spirits (2222) Q1 2026 earnings summary

Executive summary

• Achieved record-high quarterly sales and profits in FY2026 Q1, with net sales up 9.3% year-over-year and ordinary profit up 0.7% year-over-year, driven by strong domestic and inbound sales and new store openings.

• Inbound sales (international terminal sales) rose 14.8% year-over-year, reaching 2,646 million yen, supported by increased sales personnel and expanded product offerings.

• Comprehensive income increased 1.0% year-over-year to 2,304 million yen.

• Opened new stores including Caramel Ghost House at NEWoMan Shinjuku and Tante Annie at Nagasaki Station, and reopened LeTAO New Chitose Airport Store.

• Segment structure was reorganized from the first quarter of FY2025 due to subsidiary integration.

Financial highlights

• Net sales for Q1 FY2026 were 16,976 million yen (+9.3% YoY); gross profit was 10,305 million yen (+6.1% YoY) with a margin of 60.7%.

• Operating profit was 3,439 million yen (+0.3% YoY), ordinary profit 3,472 million yen (+0.7% YoY), and net profit attributable to owners was 2,303 million yen (+1.7% YoY).

• EPS increased to 14.92 yen from 14.56 yen year-over-year.

• Total assets decreased to 48,308 million yen as of June 30, 2025, from 51,980 million yen at March 31, 2025.

• Net assets declined to 37,450 million yen from 40,085 million yen at the previous fiscal year-end.

Outlook and guidance

• FY2026 full-year forecast: net sales 79,670 million yen (+10.1% YoY), operating profit 19,650 million yen (+11.6% YoY), net profit 13,400 million yen (+10.5% YoY), and EPS 86.81 yen.

• Dividend per share forecast for FY2026 is 35 yen, with a targeted total return ratio of at least 50%.

• Plans to open 6 new stores, renew 2, and close 2 in FY2026; capital investment planned at 2.5 billion yen.

• Management expects a more uncertain business environment due to consumer thriftiness amid continued price hikes.

• Profit attributable to owners of parent projected at 13,400 million yen for the fiscal year ending March 31, 2026.