Keeper Technical Laboratory reports mixed Q1, eyes significant Q2 stock sale gain

Keeper Technical Laboratory reported first-quarter results for FY06/2026, with net sales increasing 6.7% year-over-year to 5,774 million yen. However, operating profit decreased by 7.8% to 1,380 million yen, with net profit falling 10.7% to 910 million yen. The company attributed the decline in operating profit primarily to increased personnel costs, including 128 million yen for heat countermeasures, and a 52 million yen one-time expense for its 40th-anniversary ceremony.

Sales performance varied by segment, with LABO sales up 8.2% to 3,216 million yen, driven by a 14.2% increase in store visits. Products-related business saw a 4.8% increase in sales to 2,557 million yen, boosted by a 24.0% rise in the new car market segment. The company highlighted new partnerships with Subaru and Mercedes-Benz for KeePer coatings, while non-auto coating and overseas sales experienced declines.

Additionally, Keeper Technical Laboratory announced a significant extraordinary gain from the sale of 2,687,700 shares of Soft99 Corporation common stock. The planned selling price is 11,019 million yen, with an acquisition cost of 4,256 million yen, resulting in an expected gain of 6,762 million yen. This gain is anticipated to be recorded in the second quarter of FY06/2026. The company plans to maintain its annual dividend of 60 yen per share and will announce further shareholder return policies at the Q2 earnings release.