Koshidaka FY8/2026 Sales Jump 16% on Karaoke Expansion but Operating Profit Slips 5.5%; Guides for 17% Rebound

Store growth, softer margins

Koshidaka Holdings Co., Ltd. (TSE: 2157), the operator of the Karaoke Manekineko chain, reported consolidated results for FY8/2026, the year from September 1, 2025 to August 31, 2026, on October 9, 2026 under Japanese GAAP. Net sales rose 15.9% to ¥80,401 million, while operating profit fell 5.5% to ¥10,771 million and ordinary profit 5.1% to ¥11,003 million. Net profit attributable to owners of the parent rose 20.7% to ¥6,346 million, or ¥76.31 per share against ¥64.01.

Gross profit grew only 4.8% to ¥19,250 million, and selling, general and administrative expenses rose 21.5% to ¥8,478 million. Existing-store sales were flat, held back by the comparison with a large collaboration campaign a year earlier, while higher labour and utility costs, store-renewal spending, rent revisions and digital investments such as a new POS system and the E-bo entertainment box installed in every store weighed on karaoke profit. Net profit still rose as a ¥1,007 million gain on the sale of the Atsugi Vista Hotel and a deferred-tax benefit outweighed ¥2,973 million of impairment losses on loss-making stores and facilities.

Karaoke and other segments

Karaoke sales grew 16.3% to ¥78,076 million, but segment profit fell 3.0% to ¥12,030 million. The chain opened 38 stores in Japan, and on November 1, 2025 a subsidiary, since renamed Standard, took over 70 karaoke stores from the company of that name through an absorption-type split; it ran 67 at year-end. Domestic stores rose by 91 to 794. Overseas the company opened four stores in Malaysia and one in Indonesia, consolidated KOSHIDAKA MALAYSIA SDN.BHD. for the first time and ended the year with 29 stores in four countries, while preparing openings in the United States and the Philippines.

The real-estate management segment grew sales 2.9% to ¥1,910 million, with segment profit down 1.2% to ¥219 million, and the other segment, mainly restaurants, swung to a loss of ¥55 million on new-store costs.

Balance sheet

Total assets rose 15.2% to ¥78,982 million and net assets 21.1% to ¥42,506 million, helped by the conversion of ¥3,000 million of convertible bonds into shares, and the equity ratio rose to 53.8% from 51.2%. Operating cash flow was ¥10,626 million against ¥12,774 million, and cash and cash equivalents fell ¥3,973 million to ¥6,466 million after ¥9,039 million of capital spending and ¥3,315 million paid for the store takeover. The annual dividend rises to ¥28 from ¥24, with ¥30 planned for FY8/2027.

FY8/2027 outlook

For FY8/2027, the final year of its EIP (Entertainment Infrastructure Plan) medium-term vision, Koshidaka forecasts net sales of ¥90,358 million (+12.4%), operating profit of ¥12,604 million (+17.0%), ordinary profit of ¥12,322 million (+12.0%) and net profit of ¥7,142 million (+12.5%). Beyond that plan, it has sketched a ¥300 billion sales ambition built on deeper domestic karaoke (¥150 billion), much larger overseas operations (¥100 billion) and new formats and peripheral businesses (¥50 billion).

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.