Joyful Honda Co., Ltd. (TSE: 3191), the Ibaraki-headquartered operator of large-format home centres across the Kanto region, reported net sales of ¥132,817 million, operating profit of ¥8,732 million, ordinary profit of ¥9,954 million and profit attributable to owners of the parent of ¥9,002 million for the fiscal year ended June 20, 2026 under Japanese GAAP. Basic earnings per share came to ¥149.37, return on equity was 7.1%, return on total assets on an ordinary-profit basis 5.9%, and the operating margin 6.6%.
A first set of consolidated accounts — and no comparatives
These are the company's first consolidated financial statements. Joyful Honda acquired all of the shares of Honda Co., Ltd. in September 2025 and made it a wholly owned subsidiary, and from the year under review it reports on a consolidated basis. Because no consolidated statements were prepared for the prior year, the tanshin shows no FY6/2025 figures and no year-on-year percentages at all in the results, financial-position or cash-flow tables — every prior-year cell is a dash, and management explicitly states that no comparison with the preceding year has been performed. Only the dividend table and the FY6/2027 forecast carry percentage changes. Comprehensive income was ¥9,099 million, there was no equity-method investment gain or loss, and the group operates as a single reportable segment, so no segment breakdown is disclosed. Bringing Honda into the group also produced a ¥1,940 million gain on negative goodwill, booked as extraordinary income within total extraordinary gains of ¥2,447 million.
Where the sales came from
Turnover splits into two broad merchandise fields. The home-and-building field — building materials, hardware, tools, paint and work supplies, together with interior, garden and reform lines — generated ¥75,195 million. Within it, materials and professional supplies contributed ¥25,909 million, garden and farm ¥17,780 million, interior and living ¥17,358 million, and reform ¥14,147 million. Management credits a steady capture of professional demand, the contribution of newly opened Hondaya and Joyful Honda Shizaikan stores, and a surge in air-conditioning equipment, piping components, electrical materials and installation work driven by copper prices and the so-called air-conditioner 2027 problem — a sharp tightening of Japan's energy-efficiency standards from April 2027 that will take many cheap entry-level models off the market. Escalating Middle East tensions between March and June also pulled forward buying of petroleum-derived products, and the group says prioritising stock of a hand-picked list of key items limited the drop in customer counts and basket size during the squeeze.
The daily-living field contributed ¥57,622 million: daily and household goods ¥39,207 million, pet and leisure ¥16,772 million, and other categories ¥1,642 million. Essentials held up well as the company prioritised stock of everyday necessities, while pet supplies benefited from a new standalone specialty store and from refurbishments at existing outlets. Discretionary and seasonal lines, by contrast, saw more selective buying as households economised.
Specialty-store rollout and the JOYFUL HOME rebrand
The year marked the first of a new medium-term plan, and the store programme was heavy. Joyful Honda opened Hondaya Ageo Hinode in September 2025, Hondaya Yashio Nishibukuro in January 2026, Joyful Honda Shizaikan Chiba Hamanocho in March 2026, and in June 2026 both Hondaya Higashi-Kurume Hachimancho and Joyful Honda Shizaikan Kitamoto Nakamaru. A new format pairing the materials store with agricultural and gardening lines — Joyful Honda Shizaikan FARM GARDEN+ Tochigi Hakomoricho — opened in April 2026. On the consumer side a Pet's CLOVER specialty store opened at Kashiwanoha in August 2025 and the pet hall at the Arakawaoki store was fully refitted under the same banner. The medium-term plan targets a cumulative 20 to 30 specialty-store openings. From June 21, 2026 the reform division trades under a new name, JOYFUL HOME, alongside a renovation brand, Studio.Re, and an exterior-and-garden design offer branded FREE DESIGN.EX.
Balance sheet and cash flow
Total assets stood at ¥167,672 million, of which land accounted for ¥57,663 million and cash and deposits ¥25,193 million. Liabilities were ¥41,234 million, chiefly trade payables of ¥8,014 million, long-term borrowings of ¥5,476 million and asset retirement obligations of ¥5,253 million. Net assets reached ¥126,438 million, including retained earnings of ¥118,985 million, for an equity ratio of 75.4% and book value per share of ¥2,097.77. Operating cash flow was an inflow of ¥7,283 million, built from pre-tax profit of ¥12,178 million and depreciation of ¥3,329 million less ¥3,194 million of tax paid, a ¥2,714 million inventory build and the ¥1,940 million non-cash negative goodwill gain. Investing activities used ¥5,131 million, mainly ¥4,880 million of property, plant and equipment purchases. Financing used ¥9,396 million, principally ¥4,890 million of long-term debt repayment and ¥4,484 million of dividends paid. Cash and equivalents ended the year at ¥24,974 million, down from ¥32,218 million.
Dividend lifted to ¥84 — next year's year-end left blank
Joyful Honda set the FY6/2026 annual dividend at ¥84.00 per share (¥42.00 interim plus ¥42.00 year-end), a total payment of ¥5,089 million for a consolidated payout ratio of 56.2% and a dividend-on-equity ratio of 4.0%. The prior year paid ¥64.00 (¥32.00 plus ¥32.00), but each of those instalments included a ¥5 fiftieth-anniversary commemorative dividend, so the ordinary base was ¥54.00. From the FY6/2026 interim the company has run a policy of a DOE of at least 4.0% coupled with progressive dividends. For FY6/2027 the forecast shows only the ¥42.00 interim: the board resolved to leave the year-end dividend undetermined because, once the joint holding company with Arcland is established, dividends will be paid by that company rather than by Joyful Honda. The annual total for FY6/2027 is therefore blank.
Arcland integration: every milestone now undetermined
In April 2026 Joyful Honda and Arcland Co., Ltd. signed a basic agreement to combine as equals under a jointly established holding company created by joint share transfer, with the original plan pointing to an effective date of March 1, 2027. On July 3, 2026 the board resolved to change that schedule after it emerged that Pet's First Holdings, which Arcland took over completely in June 2025, may have applied inappropriate accounting; Arcland has convened a special investigation committee made up solely of outside experts. Every remaining milestone — the definitive agreement, the share-transfer plan, the approving shareholder meetings at both companies, the last trading day, delisting and the holding company's incorporation — is now listed as undetermined. The two sides say they will reassess whether March 1, 2027 remains achievable once the investigation's impact on Arcland's consolidated figures is clear. Targeted synergies include joint merchandise procurement to lower purchase costs, mutual use of logistics networks, shared store-development and operating know-how, and consolidation of back-office functions.
FY6/2027 guidance
For the year to June 20, 2027 the company guides net sales of ¥140,000 million (+5.4%), operating profit of ¥8,600 million (−1.5%), ordinary profit of ¥9,800 million (−1.6%) and net profit of ¥6,600 million (−26.7%), with EPS of ¥109.50. First-half guidance is sales of ¥69,700 million (+8.7%), operating profit of ¥4,350 million (−17.4%), ordinary profit of ¥4,930 million (−16.0%) and net profit of ¥3,350 million (−43.8%), for EPS of ¥55.58. The much steeper decline at the net line reflects the absence of this year's one-off extraordinary gains — the ¥1,940 million negative goodwill and a ¥450 million gain on the sale of investment securities. Crucially, the forecast is calculated on the company's current organisation and does not incorporate the planned integration. The basic policy for the new year is to increase the reasons customers want to return, concentrating resources on reform, pet, garden, JOYFUL2 and materials.
| Metric | FY6/2026 | FY6/2027 guidance | YoY |
|---|---|---|---|
| Net sales (¥ billion) | 132.82 | 140.00 | +5.4% |
| Operating profit (¥ billion) | 8.73 | 8.60 | -1.5% |
| Ordinary profit (¥ billion) | 9.95 | 9.80 | -1.6% |
| Net profit attrib. to owners (¥ billion) | 9.00 | 6.60 | -26.7% |
| Basic EPS (¥) | 149.37 | 109.50 | -26.7% |
| Annual dividend (¥) | 84.00 | 42.00 + undetermined | — |
| Operating margin (%) | 6.6 | 6.1 | — |
| Equity ratio (%) | 75.4 | — | — |
| ROE (%) | 7.1 | — | — |
| Book value per share (¥) | 2,097.77 | — | — |
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.