Daiichikosho (7458 ) Q1 2026 earnings summary

Executive summary

• Net sales for FY2026 1Q reached a record high of ¥41,157 million, up 1.5% year-over-year, with operating profit up 17.6% and both exceeding expectations.

• Ordinary profit increased 12.2% to ¥5,129 million.

• Net income attributable to owners declined 10.9% to ¥3,137 million due to the absence of prior year's gain on sale of fixed assets.

• Main segments performed solidly, though the boost from the previous year's new product launch (LIVE DAM WAO!) tapered off.

• Earnings forecast for FY2026 (1H/full year) revised upward reflecting strong 1Q results.

Financial highlights

• Net sales: ¥41,157 million (+1.5% YoY); gross profit: ¥14,750 million (+4.2% YoY).

• Operating profit: ¥4,991 million (+17.6% YoY); ordinary profit: ¥5,129 million (+12.2% YoY).

• Net income attributable to owners: ¥3,137 million (−10.9% YoY); basic EPS ¥30.35, down from ¥33.78 YoY.

• Gross margin improved due to higher recurring revenue and reduced SG&A expenses.

• Comprehensive income rose 6.8% to ¥3,492 million.

Outlook and guidance

• FY2026 full-year net sales forecast revised to ¥169,000 million (+0.2% vs. initial), operating profit to ¥19,300 million (+4.3%), and net income to ¥12,600 million (+3.3%).

• Full-year net sales forecast at ¥169,000 million, up 3.7% YoY; operating profit projected at ¥19,300 million, up 7.7% YoY; profit attributable to owners expected to decrease 20.7% to ¥12,600 million.

• Annual dividend forecast raised to ¥68.00 per share.

• Segment forecasts: Commercial Karaoke net sales ¥65,750 million, Karaoke Cabin/Restaurant ¥74,750 million, Parking ¥23,000 million, Music Software ¥5,500 million.

• Key initiatives include expanding LIVE DAM WAO! features, targeting seniors, and enhancing store profitability.