Kyoritsu Maintenance Co., Ltd.

Kyoritsu Maintenance's consolidated results for the first quarter of the fiscal year ending March 2027, announced on August 7, showed revenue of 61.142 billion yen, up 7.6% year on year, and operating profit of 4.864 billion yen, up 8.2%. Quarterly net profit, however, fell 15.5% to 3.04 billion yen. Ordinary profit came to 4.81 billion yen, down 3.9%, weighed down by a decline in equity-method investment gains, and net profit was also pressured by the reversal of a one-off tax cost reduction recorded in the prior year following a review of the recoverability of deferred tax assets. Among the five business segments, the hotel business posted both the largest revenue and the largest operating profit: revenue from external customers was 36.924 billion yen, accounting for 60.4% of the total, and operating profit was 3.744 billion yen, also the largest, but this represented an 8.1% decline from a year earlier. The drop was attributed to the opening of Dormy Inn Yokkaichi, the 100th Dormy Inn chain property in Japan, featuring the natural hot spring Hii no Yu, as well as higher costs from large-scale renovation work. The dormitory business, meanwhile, recorded revenue of 15.981 billion yen, or 26.1% of the total, and operating profit of 2.269 billion yen, up 29.6%, outpacing the hotel business in profit growth.