Tea Life Co., Ltd. (TSE: 3172) reported consolidated results for the first nine months (cumulative third quarter) of FY7/2026, the fiscal year ending July 31, 2026 (J-GAAP). Revenue fell 8.2% year-on-year to ¥7,955 million, operating profit fell 31.7% to ¥195 million, ordinary profit fell 24.5% to ¥208 million, and net profit attributable to owners fell 27.2% to ¥146 million after booking a ¥37 million goodwill impairment. The equity ratio stood at 73.9%.
Wellness segment under cost pressure
The core Wellness business — health teas and beauty/health goods sold through TV shopping, catalogue mail-order and domestic and overseas e-commerce — posted revenue of ¥7,232 million (-9.3%) and segment profit of just ¥38 million (-72.4%). Slowing TV-shopping growth, a structurally shrinking catalogue-mail-order market and intensifying competition among e-commerce-mall sellers cut into sales, while higher raw-material, shipping and platform-fee costs plus upfront investment in the US market eroded margins.
Logistics steady; matcha exports a bright spot
The Logistics (third-party fulfilment) segment grew, with revenue of ¥722 million (+4.6%) and segment profit of ¥156 million (+6.9%) on better utilisation at its Fukuroi and Kakegawa centres and new-customer wins at Nagoya. The company is also developing suppliers and buyers for matcha exports, capitalising on rising overseas demand for Japanese green tea.
Guidance trimmed, dividend held
Alongside the results, Tea Life revised its full-year FY7/2026 consolidated guidance downward to reflect recent trends and booked an extraordinary impairment loss, but kept its year-end dividend forecast unchanged. Total assets were ¥8,675 million and net assets ¥6,409 million at end-April 2026.
| Metric | 9M FY7/2026 | 9M FY7/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 7,955 | 8,665 | -8.2% |
| Operating profit (¥ million) | 195 | 285 | -31.7% |
| Ordinary profit (¥ million) | 208 | 276 | -24.5% |
| Net profit attrib. to owners (¥ million) | 146 | 201 | -27.2% |
| Wellness segment profit (¥ million) | 38 | 138 | -72.4% |
| Logistics segment profit (¥ million) | 156 | 146 | +6.9% |
| Equity ratio | 73.9% | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.