Monthly Flash Report for KeePer Lab Operations and KeePer Product-Related Businesses (March)

Performance Overview

Consolidated sales for March 2026 were 2,133,828 thousand yen, representing a 4.9% decrease year-over-year. KeePer Lab Operations segment sales were 1,149,982 thousand yen, down 3.8% YoY, while the KeePer Product-Related segment recorded sales of 983,845 thousand yen, down 6.0% YoY. The KeePer Lab Operations segment operated a total of 172 stores, consisting of 141 directly operated stores and 31 franchise stores. Directly operated store sales declined 6.1% YoY, with existing 129 stores down 10.4%, but franchise store sales surged by 116.6%. The main factors behind the sales decline were fewer calendar working days, the reactionary decrease following rush demand before service price revisions, delay of new car deliveries to April and beyond, and cautious buying behavior caused by volatile gasoline prices amid the situation in Iran.

Segment Trends and Outlook

In the KeePer Product-Related segment, the aftermarket recorded a challenging 12.7% decrease YoY, while the new car dealer business remained strong with a 12.3% increase. The primary causes were external environmental factors and the reactionary decline following last year's rush demand, but there was no significant change to the demand base. The new product 'Heat Shield KeePer Film' has seen increased installation requests, and further demand expansion is expected. Although labor productivity declined 13.4% YoY, it remains controlled at a standard level, and the company is prepared to meet the anticipated demand increase in April.