Daikokutenbussan announced consolidated results for the June-August quarter. Although revenue increased 5.5% year on year, operating profit fell sharply by 65.2%. The shares subsequently fell to a new year-to-date low.
Daikokutenbussan announced its consolidated results for the June-August quarter on the 13th. Revenue was ¥83.273 billion, up 5.5% year on year, while operating profit was ¥582 million, down 65.2%. Higher costs associated with new store openings were cited as the main factor.
Although the company is working to improve its earnings structure in the first quarter, higher costs associated with store-opening investments put pressure on profit, prompting investors to sell first. Reports also emerged that the share price fell to a new year-to-date low after the results announcement.
The market view is that, although revenue remains firm, whether the company can absorb the higher costs is expected to be the focus going forward. The company’s subsequent disclosures and additional performance trends are expected to attract attention.