Key Coffee's Q1 revenue up, but profit declines amid higher costs

For the first quarter of the fiscal year ending March 2026 (April 1 to June 30, 2025), Key Coffee Inc. announced consolidated net sales of JPY 20,669 million, an 8.4% increase from the previous year. Despite the revenue growth, operating profit decreased by 39.8% to JPY 400 million, while ordinary profit fell by 29.3% to JPY 506 million. Net profit attributable to owners of the parent company also saw a 30.4% decline, reaching JPY 321 million.

The coffee industry faced challenges with domestic green bean import and consumption volumes decreasing year-on-year. While the ICO composite indicator price for coffee remained historically high, it dipped below 300 cents per pound in June 2025. Furthermore, the Japanese yen's depreciation against the US dollar, trading around JPY 140 per dollar, contributed to higher raw material costs.

Key Coffee's forecast for the full fiscal year ending March 2026 remains unchanged, projecting net sales of JPY 85,000 million, an operating profit of JPY 700 million, and a net profit attributable to owners of the parent of JPY 600 million.