CROOZ H1 Sales Jump 79% to ¥9.6 Billion and Operating Profit Returns as First Hotel-Conversion Property Is Sold

Hotel conversion becomes the main engine

CROOZ, Inc. (TSE: 2138) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 11, 2026, under a new segment structure after turning its investment property into a business. Hotel Conversion sales rose 735.7% to ¥2,376 million and segment profit 896.2% to ¥792 million as it completed its first property sale, part of rotating its holdings. The company buys older small and mid-sized buildings and converts them into hotels, arguing that this adds rooms faster and more cheaply than new construction at a time when construction costs have risen sharply and major cities face a room shortage as inbound tourism grows.

Care Staffing sales nearly tripled to ¥1,143 million but its loss widened to ¥92 million, Engineer Staffing sales rose 26.3% to ¥2,432 million but slipped to a ¥3 million loss, and the call-centre, recruitment and placement business posted a ¥188 million loss on sales up 33.1%. The Ada. e-commerce business lifted sales 30.2% to ¥2,320 million and profit 59.4% to ¥67 million. Ordinary profit was ¥37 million. CROOZ said the up-front costs were within its plan and that results swing from quarter to quarter because property sales are recognised in one go.

Guidance unchanged

CROOZ kept its FY3/2027 forecast of net sales of ¥18,000 million (+52.3%), operating profit of ¥608 million, ordinary profit of ¥159 million and net profit attributable to owners of ¥48 million, noting that earnings in its other businesses also tend to be weighted to the second half. It pays no dividend. The equity ratio was 29.0%.

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.