9980.T

Consolidated Overall Performance

• MRK Holdings achieved revenue growth and increased profit across all metrics except operating profit for the 2025 March fiscal year; operating cash flow improved significantly.
• The temporary operating profit decline is driven by proactive upfront investments for medium- to long-term growth, focused heavily on expanding human capital.
• Investments have strengthened personnel training and development, with per-employee productivity improving steadily, building a foundation for future revenue and profit growth.

Women's Underwear and Related Business Operational Highlights

• Average annual customer spend per in-store customer increased, driven by improved customer service from staff training and new product launches that lifted repeat purchases.
• New customer reservations from web promotion grew steadily, with digital marketing strategy a key focus going forward.
• E-commerce sales grew strongly from expanded product assortments and integration with physical stores, which lifted the number of regular subscription orders. The segment ended the fiscal year with 205 operating stores, after opening 2 new stores and completing 8 relocations/renovations.

Wedding and Banquet Related Business Operational Highlights

• Gran Festa Hakata, the new Fukuoka venue, opened in July 2024 but full commercial operation was delayed to December 2024 due to understaffing; monthly sales have trended upward post-launch.

Group-Wide Store Footprint

• The MRK Holdings group operated a total of 220 stores across all segments as of the end of March 2025, with continued strategic store expansion planned going forward.

Sustainability (SDGs) Initiatives

• The company continues existing initiatives including foundation product recycling, pink ribbon breast cancer awareness campaigns, solar power generation, and promotion of women's workforce participation.
• A new initiative to reduce environmental impact via SKU (stock keeping unit) optimization has been launched, aligned with the goal of aligning social problem solving with business growth.

• For the 2026 March fiscal year, MRK Holdings targets consolidated revenue growth and increased profit across all metrics, with a significant improvement in operating profit expected to come from the impact of prior year upfront growth investments.
• For the Women's Underwear and Related Business segment, the company plans to deliver revenue and profit growth from the payoff of prior investments, continue efficient customer acquisition via focused investment in cost-effective digital advertising channels, and improve customer value via better website usability and continued omni-channel integration with physical stores, alongside ongoing store network expansion to improve convenience and customer satisfaction.
• For the Maternity and Baby Related Business segment, the company targets a return to full-year profitability via continued expansion of attractive product lines and ongoing cost optimization.
• For the Wedding and Banquet Related Business segment, the company targets revenue growth via strengthened hiring to resolve staffing shortages, continued strengthened corporate banquet sales, and increased local and digital marketing to boost brand awareness; it also targets full-year profitability driven by profitable operations at the newly opened Gran Festa Hakata venue, with steady growth in wedding and banquet bookings expected as venue awareness grows.
• For the Other (beauty-related) Business segment, the company targets revenue and profit growth via strengthened hiring, revised personnel systems to improve talent development and retention, enhanced stylist training to boost customer satisfaction, and strengthened branding and digital marketing to improve customer acquisition.

1. Women's Underwear and Related Business: Achieved revenue growth driven by improved per-employee productivity from workforce training and development. Profit decreased temporarily due to upfront investments in personnel costs, additional contract liability bookings from higher company point usage, and additional bad debt allowance for some accounts receivable. Revenue contribution percentage is not provided in the transcript. 2. Maternity and Baby Related Business: Against a challenging industry backdrop with record-low birth rates in Japan, the business delivered steady revenue growth from strengthened product strategy. Profit was pressured by a one-time booking of bad debt allowance for some accounts receivable, though underlying operational performance improved substantially. Revenue contribution percentage is not provided. 3. Wedding and Banquet Related Business: Core operations (wedding venue management, cafe/restaurant food and beverage operations) delivered steady revenue growth, with post-COVID demand recovery leading to full-year profitability at the Marie Gran Akiba location. Profit decreased temporarily due to upfront capital expenditure, hiring, and marketing costs for the newly opened Gran Festa Hakata facility in Fukuoka, which experienced a delayed full launch to December 2024 due to staffing shortages. Revenue contribution percentage is not provided. 4. Other Business (primarily beauty-related services): Revenue decreased temporarily due to stylist hiring challenges and consolidation of contracted-out stores. Profit decreased as new store openings for future revenue base building experienced delayed rollout due to stylist shortages. Revenue contribution percentage is not provided.

• The Maternity and Baby Related Business operates against a persistent challenging backdrop of declining birth rates in Japan, which creates ongoing industry-level demand pressure.
• The newly opened Gran Festa Hakata wedding and banquet venue experienced a delayed full launch due to staffing shortages, which pushed out expected revenue and profit contributions from the facility.
• The beauty-related other business has faced ongoing challenges with hiring and retaining stylists, which has delayed new store expansion plans and created temporary downward pressure on current period revenue and profit.
• Upfront investments in human capital, new store openings, and new facility launches have created temporary downward pressure on current period operating profit across multiple segments.

No question and answer section is included in the provided earning call transcript.