Daiichikosho hits record sales, profits drop amid promotional costs

Daiichikosho announced its interim results for the fiscal year ending March 2026, with sales reaching JPY 80,276 million, an 8.0% increase year-over-year and a record high for an interim period. This growth was primarily fueled by robust sales of the new DAM LIVE DAM WAO! and increased revenue across core businesses. However, operating profit decreased by 6.3% to JPY 8,430 million, and net profit attributable to parent company shareholders fell by 36.3% to JPY 6,117 million, largely due to higher selling, general, and administrative expenses related to new product launches and promotions.

The company's business segments showed varied performance. The commercial karaoke business saw a 1% increase in DAM operational units. Karaoke and restaurant operations reported existing store sales increases of 4% for karaoke rooms and 1% for restaurants. The parking business expanded significantly, with the number of facilities growing by 7.8% to 4,200 and parking spaces by 9.1% to 48,000.

For the full fiscal year ending March 2026, Daiichikosho projects sales of JPY 162,700 million and operating profit of JPY 18,000 million. The company expects to recover from first-half profit shortfalls through cost control and improved profitability in the second half. A special dividend of JPY 10 per share is planned, increasing the full-year dividend forecast to JPY 67 per share, in anticipation of a JPY 40 billion gain from the sale of its current headquarters building.