Tenpos Holdings sees Q1 revenue rise, profit fall amid investments

Tenpos Holdings reported consolidated net sales of JPY 11,978 million for the first quarter ending July 31, 2025, a 4.5% increase year-over-year. Despite this revenue growth, operating profit decreased by 10.9% to JPY 715 million, and ordinary profit fell by 9.9% to JPY 774 million. Net profit attributable to owners of parent saw a substantial 33.7% decline to JPY 496 million, partially attributed to the prior year's temporary increase from a bankruptcy proceeding. The company's focus on M&A and new business development, while driving sales, has yet to translate into profit gains.

The company continues its expansion strategy, particularly in its secondhand kitchen equipment retail segment, Tenpos Busters, aiming for 300 stores nationwide. While new store openings led to increased costs, Tenpos Holdings is refining its sales staff training to improve customer spending. Investments in new businesses, including the acquisition of Sunrise Service and an equity-method affiliate stake in Marche Co., are part of a long-term strategy to achieve JPY 200 billion in sales and market capitalization, along with a 90% survival rate for its restaurant clients.