On the 14th, Yamano Holdings <7571> announced its consolidated financial results for the first quarter of the 2025 fiscal year (April-June 24). Revenue was 3.143 billion yen, a 1.9% decrease compared to the same period last year, operating loss was 0.204 billion yen (loss of 0.157 billion yen in the same period last year), ordinary loss was 0.209 billion yen (loss of 0.158 billion yen in the same period last year), and net loss attributable to parent company shareholders in the quarter was 0.171 billion yen (loss of 0.124 billion yen in the same period last year).

Revenue for the beauty business was 0.481 billion yen, a 0.7% decrease from the same period last year, and the segment profit was 0.01 billion yen (segment loss of 0.001 billion yen in the same period last year). Despite closing 4 unprofitable stores compared to the same period last year, the number of new and repeat customers increased, and one store changed its business format to respond to changes in customer demographics in the area.

Revenue for the Japanese-style jewelry business was 2.092 billion yen, a 5.8% decrease from the same period last year, and the segment loss was 0.163 billion yen (loss of 0.096 billion yen in the same period last year). Although there was an emphasis on enhancing the maintenance service for kimonos and improving customer attraction at exhibitions, closures of unprofitable stores resulted in a decrease of two stores from the same period last year, and delays in product processing and inspection caused some impact.

Revenue for the DSM business was 0.187 billion yen, a 9.7% decrease from the same period last year, and the segment loss was 0.018 billion yen (loss of 0.018 billion yen in the same period last year). The challenging business environment has been sustained due to the aging of sales staff and customers, and there was also the impact of consolidating bases and a decrease of sales staff operating under the plan for the first year of their medium-term management plan, which focuses on stabilizing revenue for existing businesses, optimize their sales structures, restructure underperforming businesses, and fortify growing businesses.

Revenue for the education business was 0.305 billion yen, a 47.8% increase compared to the same period last year, and the segment loss was 0.01 billion yen (loss of 0.014 billion yen in the same period last year). Private lessons at Man-to-Man Academy and Tokyo Guidance continued to show good performance. In addition, Tsukigakusha, newly added as the third company in the education business group in December 2023, contributed from the beginning of the period.

Revenue for other businesses was 0.076 billion yen, a 6.5% decrease compared to the same period last year, and the segment loss was 0.007 billion yen (loss of 0.02 billion yen in the same period last year). A decrease in revenue due to Old Flip, which engages in the reuse business, had an impact.

As for the consolidated performance forecast for the 2025 fiscal year, the initial plan is a sales revenue of 14 billion yen, up 1.2% from the previous year, an operating profit of 0.26 billion yen, up 157.8% from before, an ordinary profit of 0.23 billion yen, up 125.2% from before, and a net income attributable to parent company shareholders of 0.12 billion yen.

The policies aimed at achieving the initial plan of the medium-term management plan, which was announced in May 2024, for the first year of this period, which are to "turn a final profit and achieve V-shaped recovery" are progressing as planned. Efforts to stabilize revenue in existing businesses were made by optimizing the sales structure, restructuring unprofitable businesses, and strengthening expanding businesses. For the first quarter, they have focused on closing unprofitable stores and attracting new customers to strengthen their operating structure towards profits for the second quarter.