TOKYO, May 15 (Pulse News Wire) – Kaihan CO.,LTD. (3133.T) reported higher revenue but lower profits for the fiscal year ended March 31, 2026, compared to the previous fiscal year.
For the fiscal year ending March 31, 2026, the company's consolidated sales increased to ¥3.152 billion from ¥2.791 billion in the prior fiscal year. However, operating profit declined to --¥1.438 billion from --¥462 million, while ordinary profit fell to --¥1.591 billion from --¥504 million. Net income attributable to parent shareholders decreased to --¥5.135 billion from --¥737 million in the previous fiscal year. The increase in sales was attributed to strong performance across segments, surpassing the previous year’s results. However, operating profit, ordinary profit, and net income were negatively impacted by rising personnel costs, higher raw material prices due to depreciation of the yen, and increased management expenses related to exploring new business ventures. Additionally, impairment losses on goodwill and project loss provisions recorded for subsidiaries contributed to the decline in profitability. On an individual basis, Kaihan CO.,LTD.
Saw its sales rise to ¥2.125 billion from 2,050 million yen in the previous fiscal year. Operating profit and ordinary profit dropped to --¥1.115 billion and --¥1.394 billion respectively, down from --¥901 million and --¥951 million previously. Net income also decreased to --¥4.999 billion from --¥971 million last year. The improvement in individual sales was driven by continued robust customer traffic at stores. Despite positive sales trends, operating and ordinary profits suffered due to increased personnel costs and higher utility expenses caused by elevated raw material prices. Management costs rose as the company explored new business opportunities to build future revenue streams. Impairment losses on goodwill further reduced overall profitability.
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