Kappa Create posts ¥707 million operating loss in Q1; revolving sushi business also logs ¥647 million segment loss

LIMO··JP·Read original
3▲0 ▼0Impact / 5
Summary · why it matters

Kappa Create, which operates the revolving sushi chain Kappa Sushi, reported in its fiscal first-quarter results for the year ending March 2027, announced on August 12, revenue of ¥17.751 billion, an operating loss of ¥707 million, and a quarterly net loss of ¥765 million, falling into the red from an operating profit of ¥322 million in the same period a year earlier. The revolving sushi business, the company's main earner accounting for more than 80% of revenue, saw revenue roughly flat at ¥14.533 billion, but its segment result swung to a loss of ¥647 million, while the other business, deli, also posted a loss, with revenue of ¥3.217 billion and a segment loss of ¥76 million, widening its deficit, leaving both businesses in the red. The company cited persistently high raw material and energy prices, rising labor costs due to labor shortages, and a growing tendency toward thrift amid inflation. In the previous full fiscal year ended March 2026, operating profit also fell 62.9% to ¥532 million, and after recording an impairment loss of ¥715 million on fixed assets at 85 domestic stores, two overseas stores, and one domestic factory, the company posted a net loss of ¥394 million and fell to no dividend, with operating profit in the revolving sushi business dropping about 63% year on year to ¥515 million. The company's publicly announced full-year forecast for the year ending March 2027 projects revenue of ¥79.84 billion and operating profit of ¥1.366 billion, anticipating a return to higher revenue and profit, but it is far behind at the first-quarter stage, and the dividend remains undecided for a second consecutive year. The shareholder benefit program with a record date of September 30 is open to shareholders holding 100 shares or more, with benefit points usable at Colowide Group restaurants granted twice a year according to the number of shares held, and the last day to buy shares to qualify is September 28.

Impact on assets 1

Consumer Discretionary▲ · 1 stocks
© 2026 MarketIVNews