Key Coffee (2594): FY2025 Results Summary — Higher Sales and Profits, Net Income Up 361.3%

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

Note: Key Coffee does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The company labels the year ended March 31, 2026 as the fiscal year ended March 2026; this site classifies that year as FY2025, while the text, tables and segment data below keep the labels used in the source materials. Amounts are in millions of yen unless otherwise noted.

In the fiscal year ended March 2026, Key Coffee grew net sales across all of its markets and posted higher sales together with increases in every profit line. Net sales were 93,067 million yen (up 19.6% year on year), operating profit was 1,077 million yen (up 121.3%) and profit attributable to owners of parent was 988 million yen (up 361.3%). The company attributes this to efforts to improve earning power across the entire value chain, including sales activities at appropriate prices and the promotion of highly distinctive strategic products in the sales division, and a strengthened framework through cooperation with each supplier in the manufacturing and logistics divisions. For the fiscal year ending March 2027, the company plans up-front investment to raise brand value and forecasts higher sales but lower profits.

Consolidated Results (Full-Year Actual)

As a result of efforts to improve earning power across the entire value chain — sales activities at appropriate prices in the sales division to maximize operating profit, promotion of highly distinctive strategic products, and a strengthened framework through cooperation with each supplier in the manufacturing and logistics divisions — the company posted higher sales and higher profits (unit: millions of yen).

Item	Previous consolidated FY	Current consolidated FY	YoY change	YoY change rate
Net sales	77,783	93,067	15,283	19.6%
Operating profit	486	1,077	590	121.3%
Ordinary profit	636	1,318	682	107.2%
Profit attributable to owners of parent	214	988	774	361.3%

Segment Results (by Business)

The Coffee-related business posted higher sales and profits on sales activities at appropriate prices in each market. The Food service-related business posted higher sales and profits, reflecting factors including the conversion of INODA COFFEE Co., Ltd. into a consolidated subsidiary. Other posted higher sales on increased orders at Nikku Foods Co., Ltd. but lower profit (unit: millions of yen).

Business segment	Metric	Previous consolidated FY	Current consolidated FY	YoY change rate
Coffee-related business	Net sales	69,883	83,602	19.6%
Coffee-related business	Operating profit	883	1,574	78.3%
Food service-related business	Net sales	4,171	5,594	34.1%
Food service-related business	Operating profit	26	59	124.0%
Other	Net sales	3,729	3,870	3.8%
Other	Operating profit	259	256	△1.2%
Adjustments	Operating profit	△682	△813	–
Total	Net sales	77,783	93,067	19.6%
Total	Operating profit	486	1,077	121.3%

Full-Year Forecast

For the fiscal year ending March 2027, amid an uncertain business environment that includes surging green coffee bean prices, foreign exchange volatility and the situation in the Middle East, the company will carry out up-front investment and, taking a comprehensive view of the business environment and its own strategy, forecasts higher sales but lower profits (unit: millions of yen).

Item	FY ending March 2027 forecast	FY ended March 2026 actual	YoY change rate
Net sales	95,000	93,067	2.1%
Operating profit	900	1,077	△16.4%
Ordinary profit	1,000	1,318	△24.2%
Profit attributable to owners of parent	750	988	△24.1%
Annual dividend (forecast)	12 yen	Not disclosed	–

Shareholder Returns

The annual dividend forecast for the fiscal year ending March 2027 is 12 yen. Under its shareholder benefit programme, twice a year the company presents shareholders holding 100 shares or more with an assortment of coffee that includes the “Shareholder-only Blend” and other items (the assortment containing the “Shareholder-only Blend” is for shareholders holding 200 shares or more). In addition, the company sends its public relations magazine “COFFEE FAN” to shareholders four times a year.

Medium-Term Management Plan / Topics

As its “vision for 2030,” the company sets out becoming a “sustainable company of coffee and KISSA (cafe culture)” that achieves both economic value and social value in line with its corporate philosophy, and positions strengthening earning power (providing products and services that match customer needs, and new businesses / expansion of business domains) and strengthening its management base (improving operational efficiency, accelerating human capital management, strengthening the group’s comprehensive capabilities, selection and concentration of the business portfolio, and strengthening group collaboration) as the pillars of its management strategy for raising ROE. As specific targets, it aims to achieve ROE of 3% by fiscal 2027 and ROE of 5% by fiscal 2030 (ROE for the fiscal year ended March 2026 was 3.2%). Its medium-term performance targets are net sales of 95,000 million yen, operating profit of 900 million yen, ordinary profit of 1,000 million yen and net income of 750 million yen for the fiscal year ending March 2027, and net sales of 99,000 million yen, operating profit of 1,200 million yen, ordinary profit of 1,300 million yen and net income of 1,000 million yen for the fiscal year ending March 2028. In July 2025 the company also converted the long-established Kyoto coffee house INODA COFFEE Co., Ltd. into a consolidated subsidiary and is working to generate synergies in the food service-related business.

Item	FY ended March 2026	FY ending March 2027 forecast	FY ending March 2028 target
Net sales	93,067	95,000	99,000
Operating profit	1,077	900	1,200
Ordinary profit	1,318	1,000	1,300
Profit attributable to owners of parent	988	750	1,000

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.