Lapine Co., Ltd. Financial Summary for the Second Quarter of the Fiscal Year Ending February 2027 [Japanese GAAP] (Consolidated)

Overview of Results

For the interim period, Lapine Co., Ltd. recorded net sales of 851 million yen, a 7.3% decrease compared with the same period of the previous fiscal year. Operating loss was 176 million yen, ordinary loss was 157 million yen, and net loss attributable to owners of parent for the interim period was 80 million yen. By segment, both the wholesale and retail businesses saw decreases in sales and profits. The welfare business reported sales of 5 million yen and an operating loss of 16 million yen; while there was recognition of employment support–related income as non-operating income, the interim net loss persisted. The financial position showed total assets of 2,963 million yen, net assets of 701 million yen, and an equity ratio of 23.7%.

Outlook and Response

The full-year outlook forecasts net sales of 1,890 million yen and an ordinary loss of 124 million yen, with the dividend payment start date TBD. Despite significant uncertainties regarding the company’s ability to continue as a going concern, measures are underway to secure funds and reduce expenses, including improving efficiency in wholesale and retail operations, lowering manufacturing costs, and cutting fixed costs. For the welfare business, efforts focus on improving productivity and strengthening training. On the financing side, the company is negotiating repayment schedules for borrowings and pursuing monetization through asset sales to achieve early improvement in cash flow.