Kuradashi Co., Ltd. FY2026 Full-Year Earnings Deep Dive: Achieving Profitability and a Non-Linear Growth Story Toward '2.5x Revenue' in FY2027

Kuradashi Co., Ltd. (Securities Code: 5884) marked a pivotal milestone in its FY2026 full-year earnings, achieving double-digit revenue growth and profitability across all profit stages , alongside the highest earnings since its founding . This success was driven by the growth of its core EC business and the full-scale contribution of new domains (Energy business and M&A).

This report extracts key topics from the earnings presentation materials, categorized into 10 sections, providing a comprehensive analysis of performance highlights, shifts in revenue structure, medium-term growth strategies including M&A and energy, and the robustness of the company's financial foundation.

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1. FY2026 Full-Year Performance Highlights: Revenue Growth and Dramatic Turnaround to Profitability

For the full fiscal year ending June 2026, consolidated results were as follows: Net Sales of 3,764 million JPY (+22.4% YoY) , Operating Profit of 100 million JPY (a turnaround from a 63 million JPY loss in the previous year) , Ordinary Profit of 56 million JPY (a turnaround from a 70 million JPY loss) , and Net Income Attributable to Owners of the Parent of 67 million JPY (+18 million JPY YoY, a record high).

Following the investment phase conducted in the previous year, the transformation of the profit structure has progressed smoothly, significantly strengthening the profit base alongside revenue expansion.

[Slide Commentary: FY2026 Full-Year Consolidated Results]

The slide above summarizes the income statement for FY2026. The significance of this slide lies not only in the substantial revenue increase (+22.4%) but also in the fact that marginal profit reached 1,099 million JPY (+31.3% YoY), outpacing revenue growth. Effective control of variable costs, such as cost of goods sold and delivery expenses, improved gross and marginal profit margins, leading to profitability across operating, ordinary, and net profit levels. EBITDA also surged to 262 million JPY (+239 million JPY YoY), clearly demonstrating a dramatic improvement in cash-generating capability.

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2. Q4 Growth and Record-High Quarterly Revenue

Looking at quarterly performance, Q4 revenue alone surged to 1,159 million JPY (+55.4% YoY) , marking the highest quarterly revenue on record.

In addition to the steady performance of the core EC business (Kuradashi Food), the energy business (Kuradashi Energy) began contributing through the operation of storage batteries and the consolidation of Chukyo Denryoku, accelerating the pace of business scale expansion.

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3. EBITDA Variance Analysis: Underlying EBITDA Increased by 204 Million JPY

According to the analysis of the full-year EBITDA (262 million JPY), excluding one-time factors such as M&A-related expenses (29 million JPY), the underlying EBITDA increased by 204 million JPY YoY.

• Increase from Food Business: +85 million JPY (Growth of core EC and consolidation of L’atelier SHIORI)
• Increase from Energy Business: +176 million JPY (Contribution from grid-scale storage batteries)
• Increase in Fixed Costs/Personnel Expenses: ▲57 million JPY (Impact of subsidiary consolidation and taxes/dues)

The profit impact from business growth (total +261 million JPY) significantly outweighed the increase in SG&A expenses, indicating that positive operating leverage is taking effect under disciplined fixed-cost management.

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4. Business Segment Overview: Dual-Engine Growth with Food and Energy

Kuradashi's business consists of two major segments: "Kuradashi Food," centered on food loss reduction, and "Kuradashi Energy," which promotes energy optimization and renewable energy.

1. Kuradashi Food (Net Sales: 3,258 million JPY)
   • In addition to the steady growth of the core "Kuradashi" EC business, the diversification of revenue sources progressed through the acquisition and consolidation of the frozen meal delivery business (Cross Edge, operator of Dr. Tsurukame Kitchen) and online cooking classes (L’atelier SHIORI), as well as the launch of peripheral businesses such as logistics outsourcing and product development (PB/frozen meals).
2. Kuradashi Energy (Net Sales: 506 million JPY)
   • The operation of grid-scale storage batteries (including the first project, Tochigi Oyama) and the start of aggregation and EPC development businesses contributed significantly to full-year results as a new business pillar.

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5. FY2027 Full-Year Forecast: Non-Linear Growth Toward 2.5x Revenue (9.533 Billion JPY)

In its FY2027 full-year earnings forecast, Kuradashi anticipates significant growth in both revenue and profit: Net Sales of 9,533 million JPY (+153.2% YoY) , EBITDA of 892 million JPY (+239.6% YoY) , Operating Profit of 503 million JPY (+400.0% YoY) , and Net Income Attributable to Owners of the Parent of 303 million JPY (+350.3% YoY).

[Slide Commentary: FY2027 Full-Year Consolidated Earnings Forecast - Revenue Assumptions]

The slide above is a step chart visualizing the breakdown of the rapid revenue expansion from 3.7 billion JPY in FY2026 to 9.5 billion JPY in FY2027 (+5.768 billion JPY YoY).

1. Food Business Growth (①): Organic growth of existing EC and the full-scale launch of the collaboration with Japan Post (logistics and frozen meal delivery via capital and business alliance).
2. Energy Business Growth (②): Full-year contribution from the first grid-scale storage battery project, plus the sequential start of operations for subsequent projects.
3. New M&A Consolidation (③): Revenue contribution of approximately 4.3 billion JPY from the three newly consolidated companies (Chukyo Denryoku, Nakamura Shoji, and Mitowa).

With these three engines combined, the medium-term management plan target of 10 billion JPY in revenue (including the Nestia vacant house revitalization business) is becoming a realistic goal.

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6. M&A Strategy Realized: Approximately 4.3 Billion JPY in Revenue and Synergies from Three New Subsidiaries

Driving the non-linear growth in FY2027 are three strategic M&As executed recently.

[Slide Commentary: Impact of New M&A Consolidation]

This slide summarizes the business overview, revenue scale, projected EBITDA margins, and strategic significance of the three companies that joined the group.

• Chukyo Denryoku Co., Ltd. (Acquired: June 2026)
  • Business: High/low-voltage retail electricity business (holds a registered customer base).
  • Scale/Profitability: ~700 million JPY revenue, ~15% EBITDA margin.
  • Significance: Acquired a retail electricity base to expand the "Generation x Retail" value chain by combining it with grid-scale storage batteries (wholesale).
• Nakamura Shoji Co., Ltd. (Acquired: July 2026)
  • Business: Sales, wholesale, and retail of alcoholic beverages in Northern Kanto.
  • Scale/Profitability: ~2.6 billion JPY revenue, ~10% EBITDA margin.
  • Significance: Acquired procurement networks with beverage manufacturers and utilizes physical store channels as new outlets for food loss products.
• Mitowa Co., Ltd. (Acquired: August 2026)
  • Business: Planning, manufacturing, and wholesale of original gifts (catalog sales/novelties).
  • Scale/Profitability: ~1 billion JPY revenue, ~9% EBITDA margin.
  • Significance: Established a foundation for entry into the corporate gift market, creating a "Sustainable Gift" business incorporating non-standard products.

These three companies not only add approximately 4.3 billion JPY in revenue but also feature clear business synergies with Kuradashi’s existing operations (procurement network expansion, channel diversification, and energy value chain strengthening).

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7. Kuradashi Energy: Sequential Operation of Grid-Scale Storage Batteries and Stock Revenue

In the grid-scale storage battery business, which forms the core of the Energy segment, following the already operational Tochigi Oyama Battery (2MW/8MWh) , projects such as Saitama Namegawa (scheduled for Oct 2026), Gifu (Nov 2026), Shizuoka Fujieda (grid-connected), Shimane Yasugi (Jan 2027), and Kumamoto Sagara (May 2027) are scheduled to begin operations sequentially.

By utilizing JV schemes with Tsuji-Hongo Smart Asset and Green Energy & Company, the company plans to expand stable stock-type EBITDA quarter by quarter as projects accumulate.

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8. Financial Discipline and Capital Efficiency: Growth Investment Without New Share Issuance (No Dilution)

While executing aggressive M&A and storage battery investments, Kuradashi maintains strict control over financial safety and the protection of existing shareholder value.

• Total Growth Investment: 6.67 billion JPY (4.35 billion JPY already executed; remaining 2.32 billion JPY earmarked for storage batteries).
• Funding Method: Project-linked financing (bank loans) and anonymous partnership investments in JVs.
• Preservation of Shareholder Value: No new share issuance (equity finance) is involved , ensuring no dilution for existing shareholders.
• Financial Soundness: The debt-to-equity ratio at the end of FY2027 is projected at 38.4% , with shareholders' equity expected to reach approximately 3.06 billion JPY, realizing leveraged management while maintaining safety.

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9. Achieving Medium-Term Management Plan Targets and the Impact of "28.9% Underlying ROE"

Against the performance targets set in the medium-term management plan (FY2027 revenue of 10 billion JPY, EBITDA of 500 million JPY), the company expects to reach 9.533 billion JPY in revenue and 892 million JPY in EBITDA , significantly exceeding the EBITDA target.

Furthermore, the "Underlying ROE," which indicates the company's potential when all grid-scale storage battery projects contribute throughout the year, is estimated at 28.9% (Net income of 590 million JPY / Shareholders' equity of 2.06 billion JPY), demonstrating a transformation into a highly profitable company with exceptional capital efficiency.

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10. Conclusion and Future Outlook

Kuradashi's FY2026 earnings and future growth story can be summarized in the following three points:

1. Completion of the turnaround to profitability and record-high earnings in FY2026 through improved revenue structure.
2. Entering a non-linear leap phase in FY2027 with 2.5x revenue and 3.4x EBITDA growth , driven by the expansion of the Food business (M&A/Japan Post alliance) and the full-scale operation of the Energy business (grid-scale storage batteries).
3. Executing these growth investments without new share issuance (no dilution) , while achieving both high capital efficiency ( 28.9% underlying ROE ) and financial soundness.

These earnings results indicate that the company, aiming to become "infrastructure for food loss reduction," is steadily evolving into an "impact-driven corporate group" backed by a solid business model and high profitability, beyond just the perspectives of ESG and sustainability.