As for the outlook, while the domestic economy is expected to maintain its moderate recovery trend, the business environment is expected to continue to be highly uncertain as the resource prices and commodity prices continue to rise due to the unstable international situation.
In the funeral industry, the demand for funerals is forecast to continue to increase until 2040 due to the rising number of people in Japan who are at least 65 years old. On the other hand, the diversity of funeral styles is increasing as lifestyles and preferences change in Japan. As a result, we anticipate a continuation of the shift to small and simple funerals.
Our outlook for the fiscal year ending in March 2026 is as follows.
In the funeral business, we expect an increase in sales by strengthening the acquisition of funerals at existing and newly opened branches, and minimizing the decline in the unit price of funerals amid the trend toward smaller and simpler funerals, while increases in the number of deaths are expected at the three existing funeral companies, in addition to the full-year contribution of results from Kizuna Holdings Corp. (six months in the period under review), which became a consolidated subsidiary in September 2024. In the end-of-life support business, we will enhance the long-term support of our customers and their families by strengthening functions from end-of-life to post-funeral services, operating day-care facilities that specialize in rehabilitation, and expanding the provision of meals at senior care facilities. In the fiscal year ending in March 2026, we will again add funeral halls, including by using acquisitions as we meet customers’ needs and further improve the quality of our services. In terms of expenses, increases in personnel expenses and costs for opening and maintenance of funeral halls are expected due to business expansion in operating expenses, and general and administrative expenses will be affected by the elimination of temporary expenses associated with the consolidation of Kizuna Holdings Corp., which was incurred in the period under review, and an increase of goodwill amortization.
Additionally, subject to the approval of the “Partial Amendment to the Articles of Incorporation” at the 96th Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2025, we plan to change the fiscal year-end from the current March 31 to August 31. The forecasts for the consolidated financial results for the next period mentioned below are for 12 months from April 1, 2025, to March 31, 2026, as this is a transitional period for the change in the accounting period. The forecasts for the consolidated financial results for the fiscal year ending August 31, 2026 (17 months), after the change in the accounting period, are currently under examination and will be announced once the details are finalized.
| FY3/26 Forecast |
FY3/25 Results |
|
|---|---|---|
| Operating revenue (Millions of yen) |
41,700 | 31,984 |
| Operating profit (Millions of yen) |
4,900 | 4,521 |
| Ordinary profit (Millions of yen) |
4,750 | 4,363 |
| Profit attributable to owners of parent (Millions of yen) |
2,775 | 4,721 |
