Belluna’s latest quarterly results showed higher revenue but a substantial year-on-year decline in operating profit. The results highlighted that the Database Utilization Business accounts for nearly 90% of total company profit, and also referred to shareholder benefits whose record date is the end of September.
Belluna Co., Ltd., a major mail-order company, announced its results for the first quarter of the fiscal year ending March 2027, covering April–June 2026. Revenue was ¥52.185 billion, ordinary profit was ¥1.369 billion and net income for the quarter was ¥939 million, up 2.7%, 8.8% and 27.2%, respectively, year on year. Operating profit, however, declined 21.8% year on year to ¥1.244 billion.
The Database Utilization Business accounts for most of the company’s total profit. Although its revenue was ¥5.403 billion, approximately 10.3% of company-wide revenue, operating profit was ¥1.119 billion and its profit margin was 20.7%, accounting for nearly 90% of company-wide operating profit.
The Database Utilization Business comprises three operations: enclosure and co-mailing services for corporate customers, contracted fulfillment services, and the finance business operated by subsidiary Sunstage. Only the finance business posted higher revenue and profit, while the other businesses saw lower profit, leaving the company-wide profit level almost unchanged.
The earnings briefing cited factors behind the decline in profit in the Property Business, including real estate acquisition taxes and losses at overseas hotels, as well as factors behind the decline in the Cosmetics and Health Foods Business, including higher advertising expenses and the optimization of overseas inventories. It also cited the impact of higher enterprise-size-based local corporate tax. The kimono-related business narrowed its loss, and the apparel and general merchandise businesses posted higher profit, but overall growth remained limited.
The record date for shareholder benefits is 30 September, and attention is also focused on trends in the combined yield from shareholder benefits and dividends. Some investors have expressed an interest in reviewing the results for the second quarter at the next earnings announcement.
Belluna operates across 8 segments. Under its current business mix, even if the Database Utilization Business has a high profit margin, company-wide profit trends remain affected by the performance of the other segments.