Koshidaka Holdings (2157): FY2025 Results Summary — Record Sales and Operating Profit, Fourth Straight Dividend Increase

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Koshidaka Holdings closes its books at the end of August and labels the year ended August 31, 2025 as “FY8/2025”; the presentation’s own labels are kept in the text, tables and segment data below. In FY8/2025 the company posted record high net sales, operating profit and ordinary profit. Net sales rose 9.7% year on year to 69,387 million yen and operating profit rose 12.1% to 11,392 million yen, while profit attributable to owners of parent fell 21.9% to 5,258 million yen because of a 3,400 million yen impairment loss on stores and other facilities that had been unprofitable for the past two fiscal years. The annual dividend was raised by 6 yen to 24 yen per share, the fourth consecutive year of an increase and a new all-time high adjusted for stock splits.

Consolidated Results (Full-Year Actual)

Net sales were below the forecast, but sales and earnings increased thanks to actions to optimize productivity that started in the second half. Karaoke sales were up 9.7% on the continuation of opening many stores and steady growth in the number of customers at existing stores, and optimized management of operations offset rising personnel, electricity and other expenses. Ordinary profit reached a record high despite a temporary downturn in non-operating income that included decreases of 405 million yen in cancelation income and 262 million yen in forex gains.

Item (Million yen)	FY8/2024	FY8/2025	YoY Change	YoY Ratio	FY8/2025 Forecast	Achievement ratio
Net sales	63,263	69,387	+6,123	+9.7%	71,057	97.6%
Gross profit	16,753	18,373	+1,619	+9.7%	–	–
SG&A expenses	6,589	6,980	+391	+5.9%	–	–
Operating profit	10,164	11,392	+1,229	+12.1%	11,578	98.4%
(Operating profit to net sales)	16.1%	16.4%	–	–	–	–
Ordinary profit	10,934	11,598	+664	+6.1%	11,536	100.5%
(Ordinary profit to net sales)	17.3%	16.7%	–	–	–	–
Profit attributable to owners of parent	6,735	5,258	-1,476	-21.9%	7,499	70.1%
(Profit to net sales)	10.6%	7.6%	–	–	–	–
Net income per share (Yen)	82.70	64.01	-18.69	-22.6%	91.97	69.6%

Segment Results

In the Karaoke segment, the company determined the most suitable prices for individual stores based on competition, which increased the number of customers; the decline in sales per customer ended in May and sales per customer increased every month afterward. Real Estate Management posted higher sales and earnings on the stable performance of existing properties and a contribution from new properties, with occupancy at almost 100% at major properties such as AQERU Maebashi, MANEKI Shimbashi Building and Fleuret Sakuragicho. Other businesses returned to profit as all food and beverage stores, such as “Gindaco Highball” and “CAFE ECLA”, performed well.

Segment	Metric (Million yen)	FY8/2024	FY8/2025
Karaoke	Net sales	61,246	67,162
Real Estate Management	Net sales	1,585	1,857
Other	Net sales	863	879
Adjustment	Net sales	(431)	(511)
Karaoke	Operating profit	11,493	12,405
Karaoke	(Operating profit to net sales)	(18.8%)	(18.5%)
Real Estate Management	Operating profit	109	222
Real Estate Management	(Operating profit to net sales)	(6.9%)	(12.0%)
Other	Operating profit	(37)	37
Adjustment	Operating profit	(1,401)	(1,272)

Existing store sales rose 3.3% year on year on a monthly basis, with the number of customers up 3.7% and sales per customer down 0.4% compared with FY8/2024. The Manekineko chain opened 50 stores and closed 11 (all for relocations) during the year, taking the total store count including One Kara to 703 stores and 19,052 rooms, an increase of 39 stores and 1,399 rooms. Overseas, net sales were 1,451 million yen with operating profit of 63 million yen at 25 locations, and the company established a subsidiary in the Philippines while preparing for its first store in the U.S.

Item	FY8/2024	FY8/2025	Change
Manekineko, near railway stations/prime shopping areas (stores)	380	409	+29
Manekineko, suburban/roadside locations (stores)	278	288	+10
Manekineko total (stores)	658	697	+39
One Kara (stores)	6	6	0
Total stores	664	703	+39
Total rooms	17,653	19,052	+1,399

Balance Sheet and Cash Flows

Total assets increased 6,874 million yen to 68,588 million yen, mainly in non-current assets, as the number of newly opened stores remained high. Net assets rose to 35,105 million yen on net earnings and the exercise of share acquisition rights, lifting the equity ratio to 51.2% from 49.2%. Net interest-bearing debt fell to 1,038 million yen from 4,664 million yen due to a decline in convertible bonds, and the net DER improved to 0.03 times from 0.15 times. ROE was 16.1%, down 8.1 points. Free cash flows more than doubled to +4,482 million yen and cash and cash equivalents at the end of the period rose 3,689 million yen to 10,439 million yen.

FY8/2026 Forecast

For FY8/2026 the company forecasts a 1% year-on-year increase in existing store sales in Japan, the first full-year contribution of the 50 stores added in FY8/2025, and sales from new stores to be added during the year. The forecast includes sales of 7,000 million yen and operating profit of 200 million yen from the stores acquired from Standard Corp. (November 2025 to August 2026), and sales of 1,000 million yen and operating profit of 100 million yen at Koshidaka Malaysia, which is newly consolidated in FY8/2026. About 900 million yen in gain on sale of non-current assets is anticipated as extraordinary income in the first quarter, while the lower limit of the profit forecast anticipates an extraordinary loss equivalent to the impairment loss in FY8/2025 at the end of the period.

Item (Million yen)	FY8/2025 Result	FY8/2026 Forecast	Change	Ratio
Net sales	69,387	82,544	+13,157	+19.0%
Operating profit	11,392	12,966	+1,573	+13.8%
(Operating profit to net sales)	(16.4%)	(15.7%)	–	–
Ordinary profit	11,598	12,911	+1,313	+11.3%
(Ordinary profit to net sales)	(16.7%)	(15.6%)	–	–
Profit attributable to owners of parent	5,258	7,500 to 9,493	+2,241 to +4,234	+42.6% to +80.5%
Net income per share (Yen)	64.01	90.99 to 115.18	+26.98 to +51.16	+42.1% to +79.9%

By segment, Karaoke net sales are forecast at 80,781 million yen with operating profit of 14,194 million yen. Real Estate Management sales are expected to decline to 1,783 million yen because Hotel Vista Atsugi is scheduled for sale as of October 24, and Other business sales are forecast at 487 million yen as the closure of the Koriyama Maneki-no-Yu bath house lowers sales by 500 million yen, partly offset by forecast sales growth of 100 million yen from existing and new food and beverage locations.

Segment	Metric (Million yen)	FY8/2025 Result	FY8/2026 Forecast	YoY Change
Karaoke	Net sales	67,162	80,781	+13,618
Real Estate Management	Net sales	1,857	1,783	-74
Other	Net sales	879	487	-393
Adjustment	Net sales	(511)	(487)	25
Karaoke	Operating profit	12,405	14,194	+1,788
Real Estate Management	Operating profit	222	192	-30
Other	Operating profit	37	(1)	-39
Adjustment	Operating profit	(1,272)	(1,419)	-147

Shareholder Returns

Distributing earnings to shareholders is one of the highest priorities of Koshidaka Holdings, and the company’s policy is to pay dividends consistently while taking steps for the medium- and long-term growth of the value of its stock. For FY8/2025 the company paid an interim dividend of 12 yen and a year-end dividend of 12 yen, for an annual dividend of 24 yen and a payout ratio of 37.5%. For FY8/2026 it plans an interim dividend of 13 yen, an increase of 1 yen from the FY8/2025 year-end dividend, and a year-end dividend of 13 yen, for a total full-year dividend of 26 yen per share. The shareholder benefit program (record date August 31) provides gift coupons ranging from 2 coupons (2,000 yen) for holders of at least 100 shares for under three years to 20 coupons (20,000 yen) for holders of 1,000 or more shares for three years or more.

Dividend per share (Yen)	FY8/2024	FY8/2025	FY8/2026 (Forecast)
Interim	7.0	12.0	13.0
Year-end	11.0	12.0	13.0
Annual	18.0	24.0	26.0
Payout ratio	21.8%	37.5%	22.6% to 28.6%

Medium-Term Plan: EIP Final Stage

Koshidaka reached the intermediate goal of the Entertainment Infrastructure Plan (EIP) of 65 billion yen in net sales in FY8/2025 and expects to reach the final goal of 100 billion yen in FY8/2027. KPI targets for the final year of the plan are net sales of 100.0 billion yen, operating profit of 16.5 billion yen (estimated), a payout ratio of at least 35.0%, DOE of at least 6.0% and ROE of at least 15.0%, against FY8/2025 results of 69.39 billion yen in net sales, 11.39 billion yen in operating profit, a 37.5% payout ratio, 6.0% DOE and 16.1% ROE.

The four initiatives of the EIP final stage are to double the pace of store openings, to improve profitability by increasing productivity, to expand fully outside Japan, and to create new sources of earnings. Koshidaka subsidiary KOSHIDAKA SP will use an absorption-type split, planned for November 1, to acquire about 70 stores including JOYSOUND karaoke stores operated by Standard Corp., a subsidiary of XING Inc.; Standard Corp. recorded net sales of 8,693 million yen and operating profit of 42 million yen in FY3/2025. Outside Japan the goal is 100 Southeast Asian locations by FY8/2027, including more than 30 in Malaysia and more than 15 each in Thailand and Indonesia, plus a target of 100 North American locations within about five years.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.