Riso Kyoiku posts lower profit, shifts to holding company structure

Riso Kyoiku Group reported consolidated financial results for the six months ended August 31, 2025, with net sales reaching 16,762 million yen, a 1.1% increase year-over-year. However, operating profit declined by 46.6% to 779 million yen, and ordinary profit fell by 45.1% to 800 million yen. Profit attributable to owners of parent also decreased by 38.2% to 552 million yen.

This profit decline was primarily attributed to increased rent, personnel costs, and advertising expenses associated with new school openings and base-up initiatives. Total assets were 21,396 million yen, a decrease of 713 million yen from the prior fiscal year-end, mainly due to a reduction in cash and cash equivalents.

The company announced a significant organizational change, transitioning to a holding company structure effective September 1, 2025. This involves a company split where its educational businesses will be succeeded by TOMAS Co., Ltd., a wholly-owned subsidiary. The parent company's name will change from "RISO Kyoiku Co., Ltd." to "RISO KYOIKU GROUP CORPORATION." The purpose of this shift is to enhance management efficiency and achieve sustainable growth.