TENPOS HOLDINGS Co.,Ltd.

Business Details

The segment's core operations comprise three companies: Tempos Busters Co., Ltd., which operates a nationwide network of stores selling new and used kitchen equipment; Kitchen Techno Co., Ltd., which conducts direct sales to major restaurant chains and supermarkets; and Tempos.com Co., Ltd., which operates e-commerce mail-order sales for restaurants. In addition to selling new and used kitchen equipment, the segment also offers kitchen design proposals and construction services utilizing 3D drawings. Segment revenue for FY2026 (ending March 2026, referred to as the fiscal year ending April 2026 in this document) was ¥28,644 million, making it the group's core business accounting for more than half of total group revenue.

Recent Overview

Overshadowed by the restaurant business's strong growth, the merchandise segment posted only marginal revenue and profit growth, with widening internal disparities

In the fiscal year ended April 2026, segment revenue was ¥28,644 million (up 4.5% year on year) and operating profit was ¥2,334 million (up 2.6%), representing only marginal growth. Tempos Busters secured overall revenue growth from new store contributions and growth in used equipment sales (up to 111.6% of the prior-year level), but existing-store sales remained sluggish at 99.0% of the prior-year level. Tempos.com saw operating profit surge 542.1% due to cost reductions from in-house operations. Meanwhile, Kitchen Techno suffered a sharp 53.1% decline in operating profit due to a combination of fewer new store openings among existing customers and rising personnel costs. As a subsequent event, in May 2026 the company made kitchen equipment manufacturer Meiwa Manufacturing Co., Ltd. a wholly owned subsidiary through a share exchange, aiming for vertical integration of the supply chain through in-house manufacturing.

Key Products

Growth Drivers

• Continued store openings toward Tempos Busters' target of a 300-store nationwide network (4 new openings and 2 relocations in the current period, with overseas expansion also under consideration)
• Raising the average spend per new store opening through enhanced 3D drawing proposals (currently ¥595,000, targeting ¥1 million)
• Expansion of Tempos.com's corporate-only site membership (9,103 companies at fiscal year-end) and expansion into the facility-services market and overseas e-commerce
• Strengthening the purchase of used kitchen equipment (developing proprietary sourcing channels, introducing Toyota-style 5S methods, and increasing foreign staff on specified skilled worker visas to strengthen refurbishment operations)
• Expansion of private-brand products and vertical integration of the supply chain (in-house manufacturing) through the full consolidation of Meiwa Manufacturing Co., Ltd.
• New sales channel development by Kitchen Techno through the opening of a ramen-specialty physical store, "Osaka Ramen Senmonkan" (Osaka Ramen Specialty Hall), in April 2026

Risks

• Risk to the revenue structure from sluggish growth at existing Tempos Busters stores (existing-store sales at 99.0% and register customer count at 98.2% of the prior-year level) combined with dependence on new stores
• Risk of increased SG&A expenses from aggressive store openings and staff increases squeezing profit (Tempos Busters profit growth remains marginal)
• Risk of continued sluggish revenue and profit at Kitchen Techno if it fails to reduce dependence on major restaurant chains and supermarkets as sales channels
• Risk that Tempos.com fails to transition from profit improvement driven by cost reduction to profit generation driven by revenue growth
• Challenges in securing a stable supply of used kitchen equipment (procurement staff and locations) to achieve the 300-store target
• Risk of goodwill recognition and integration costs arising from the consolidation of Meiwa Manufacturing (the amount of goodwill has not yet been finalized)