Beauty Cadahn Holdings <3041> announced its consolidated financial results for the first quarter of the fiscal year ending June 2025 on the 14th. Revenue increased by 5.9% year-on-year to 1.807 billion yen, operating loss was 0.074 billion yen (previous year's loss was 0.031 billion yen), recurring loss was 0.071 billion yen (previously 0.028 billion yen loss), and the quarterly net loss attributable to shareholders was 0.058 billion yen (previously 0.031 billion yen loss).

Revenue from the fresh flower altar business increased by 9.9% year-on-year to 0.969 billion yen, while operating profit decreased by 55.5% to 0.021 billion yen due to rising raw material and labor costs. Overall, the funeral business is expected to continue growing, but there is a need to respond to trends toward smaller funerals such as "family funerals," "private funerals," and "one-day funerals" which are occurring nationwide, leading to a decline in unit price. Despite these challenges, strategies based on the medium-term management plan have been implemented, along with new service deployments and new product sales in response to the trend towards smaller funerals.

Revenue from the fresh flower wholesale business increased by 3.6% to 0.648 billion yen, while operating profit increased by 53.8% to 0.016 billion yen. My Success, a 100% subsidiary, is working on improving operational efficiency, along with strengthening competitiveness as a group; however, during this period, a drop in incoming volume due to rising temperatures and disruptions in logistics caused by typhoons during the mid-term led to higher sales prices and a subsequent decrease in revenue, although handling volume increased in the latter half. The business continues to pursue synergies between the fresh flower wholesale business (domestic distribution) and the fresh flower altar business, executing reforms towards a fundamental logistics system, while also passing on increased selling prices, scrutinizing handled items, and improving selling and administrative expense efficiency resulted in increased profits.

Revenue from the bridal floral decoration business increased by 12.3% to 0.074 billion yen due to a recovery in the unit price per order; however, an operating loss was recorded at 0.015 billion yen (the previous year's loss was 0.006 billion yen). Efforts have been made to increase orders through deeper engagements with existing customers in the Kansai and Kyushu regions, expand new trading partners in the same areas, and grow retail sales; however, these efforts have been impacted by rising costs and labor expenses.

Revenue from other businesses decreased by 13.3% to 0.115 billion yen, and the operating loss was influenced by the decline in sales and production challenges due to agriculture, resulting in a loss of 0.027 billion yen (previously 0.001 billion yen loss). The other businesses include system development, planning and consulting services related to ceremonial occasions, employment continuation support services, and agriculture. In the first quarter of this fiscal year, the system development business saw a decline compared to the previous period when there was a special demand due to invoice compliance.

The consolidated earnings forecast for the fiscal year ending June 2025 remains unchanged, with revenue projected to increase by 8.8% year-on-year to 7.6 billion yen, operating profit expected to increase by 29.6% to 0.11 billion yen, recurring profit expected to increase by 10.4% to 0.11 billion yen, and net income attributable to shareholders expected to increase by 145.3% to 0.07 billion yen.