C-United drives consolidated revenue growth, while separating its contribution from the existing business is necessary

First-quarter revenue was ¥85,032 million, up 26.4% year on year, but C-United Co., Ltd. became a newly consolidated subsidiary in April 2026. Accordingly, this revenue growth rate cannot be explained solely by a recovery in demand at existing stores or the effects of price increases. The expansion of the consolidation scope resulting from the acquisition must be separated from growth in the existing business.

C-United posted revenue of ¥9,263 million and business profit of ¥547 million in the first quarter. Revenue represented approximately 10.9% of consolidated revenue, while its business profit margin was approximately 5.9%. However, C-United was not included in the consolidated results in the year-earlier quarter, so a simple year-on-year comparison cannot be calculated. In FY2027-H1, it will be important to see whether cumulative revenue and business profit for C-United can be presented alongside the revenue growth rate on a pre-consolidation existing-business basis.

Store numbers have also been strongly affected by the change in the consolidation scope. The total number of stores, including franchise stores, was 2,633 at the end of the fiscal year ended March 2026, compared with 3,199 at the end of the first quarter, a simple difference of 566 stores. This is almost equal to C-United's 565 stores, suggesting that most of the expansion in the store network resulted from the acquisition. However, the precise breakdown, including openings, closures and the definition of store numbers, needs to be confirmed next time.

The purchase consideration was ¥44,092 million and the voting rights ratio acquired was 100%. The fair values of the acquired assets and assumed liabilities were still being calculated as of the previous disclosure. First-quarter revenue by region was ¥70,130 million in Japan, ¥4,187 million in North America, ¥4,450 million in Asia and ¥6,265 million in Oceania. It is also necessary to confirm where C-United's revenue is included by region and segment. In H1, whether synergies from C-United's store openings, franchise development, procurement and logistics are disclosed in monetary terms will be a factor in assessing the quality of the acquisition.