KATITAS Co. Reports Strong Profit Growth Amid Modest Sales Increase

KATITAS CO ( (KTITF) ) has released its Q4 earnings. Here is a breakdown of the information KATITAS CO presented to its investors.

KATITAS Co., Ltd. is a Japanese company listed on the Tokyo Stock Exchange, specializing in the refurbishing and remodeling of pre-owned single-family detached houses, primarily catering to the middle- and lower-income market. The company provides a unique ‘Fourth Option’ in housing, offering refurbished homes as an alternative to newly built, ‘as-is’ pre-owned, and rental properties.

In its latest earnings report for the fiscal year ended March 31, 2025, KATITAS Co. reported a modest increase in net sales by 2.2% to ¥129,537 million, while operating profit rose significantly by 12.2% to ¥14,222 million. The company also saw a 12.4% increase in profit attributable to owners of the parent, amounting to ¥9,550 million.

Key financial metrics highlighted in the report include a 12.6% rise in ordinary profit to ¥13,876 million and an adjusted operating profit of ¥16,160 million, up 9.5% from the previous year. The company’s strategic focus on increasing the number of homes sold and expanding its inventory has contributed to these positive results. Additionally, the equity-to-asset ratio improved to 54.9%, reflecting a stronger financial position.

Looking ahead, KATITAS Co. aims to continue its growth trajectory with a forecasted 12.7% increase in net sales for the fiscal year ending March 31, 2026. The company plans to enhance its supply capacity and focus on product development tailored to customer needs, aiming for an operating profit of ¥20,000 million by the end of its fourth medium-term management plan.

The management remains optimistic about the future, despite economic uncertainties, and is committed to maintaining a progressive dividend policy with a payout ratio of at least 50%, reflecting its dedication to shareholder returns.