KOSE R.E. (3246) investor relations material

Executive summary

• Revenue for the first half of FY2027 was ¥2,807 million, down 4.2% year-over-year, with an operating loss of ¥114 million and a net loss attributable to shareholders of ¥24 million, reversing a profit in the prior year.

• The business environment remains challenging due to rising land and construction costs, higher interest rates, and cautious consumer sentiment.

Financial highlights

• Operating loss widened to ¥114.8 million from ¥52.4 million year-over-year; net loss attributable to shareholders was ¥24.1 million versus a profit of ¥12 million last year.

• Gross profit margin declined as sales and segment profits fell in key businesses.

• EPS for the half-year was -¥2.37, compared to ¥1.18 in the prior year.

• Total assets at period-end were ¥19,148 million, down ¥625 million from the previous year-end.

• Cash and equivalents decreased by ¥2,624 million to ¥2,049 million.

Outlook and guidance

• Full-year revenue forecast is ¥10,350 million (+3.0% YoY), with operating profit of ¥664 million (-32.4% YoY) and net profit of ¥440 million (-36.8% YoY); no change from previous guidance.

• Dividend forecast remains at ¥24 per share for the year.