Beauty Kadan Holdings Co.,Ltd.
3041・Standard Market・Wholesale Trade
Business
Beautikadan Holdings Co., Ltd. is a floral business group founded in Kumamoto in 1974. With 10 consolidated subsidiaries, the group is organized into four segments: production, installation, and sale of floral altars and flower offerings for funeral-related companies (floral altar business); flower procurement and sales from domestic and overseas growers and wholesale markets (flower wholesale business); production, installation, and sale of bridal floral products for wedding venues (bridal floral decoration business); and funeral consulting, continuous employment support, agriculture, restaurants, and fertilizer manufacturing and sales (other businesses). Its main customers are funeral-related companies, wedding venues, and flower retailers. The company transitioned to a holding company structure in January 2024 and is listed on the Standard Market of the Tokyo Stock Exchange. Consolidated net sales for FY2025 (ended June 2025) were ¥7,603 million.
Business Model
The flower wholesale business (My Success Co., Ltd.) procures fresh flowers from domestic and overseas production areas and wholesale markets, supplying them to the group's flower altar business and bridal flower decoration business while also selling to external customers. By feeding downstream demand information back upstream, the company improves procurement accuracy and minimizes inventory losses. In the flower altar business, altars with added value created through advanced design techniques are sold to funeral-related companies, maintaining unit prices through technical differentiation. The flower altar business accounts for approximately 54% of sales, and its profitability determines the overall profit of the group.
Company Strengths
The company holds purchasing rights at central and local wholesale markets across the country, securing multiple supply channels. Through a vertically integrated structure in which the Fresh Flower Wholesale Business feeds upstream information back to the Fresh Flower Altar Business, the company achieves cost control and minimizes inventory losses. In FY2025 (ended June 2025), sales of the Fresh Flower Wholesale Business grew 14.1% year on year to ¥2,555 million.
The annual number of deaths in Japan reached 1,605 thousand in 2024 and continues to trend upward (Ministry of Health, Labour and Welfare estimate). Sales of the Fresh Flower Altar Business have continued to expand from FY2021 (ended June 2021) through FY2025 (ended June 2025), reaching ¥4,077 million in FY2025 (ended June 2025), up 5.5% year on year. The company has established new products and a centralized production system that respond to the trend toward smaller-scale funerals, giving it the ability to adapt to changes in demand.
In January 2024, the company transitioned to a holding company structure, promoting group-wide capital efficiency, business diversification through M&A, and DX initiatives (web ordering systems and CRM integration). In FY2025 (ended June 2025), the company transferred its shares in the systems development business (SHF Co., Ltd.), which had been a source of losses, effective June 30, 2025, improving its loss structure. The equity ratio improved to 21.1% (from 20.0% in the previous fiscal year).
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive periods, from ¥5,349 million in FY2021 to ¥7,603 million in FY2025, but turned to a decline in the cumulative first nine months of FY2026 (ending June 2026), falling to ¥5,650 million (down 5.0% year on year). The main cause was reduced revenue following the transfer of the system development business. Operating loss widened to ¥60 million (versus a profit of ¥5 million in the same period of the prior year). External factors—rising import flower material costs due to yen depreciation, and elevated logistics costs and material prices—pressured profitability across all segments. The full-year forecast (revenue of ¥7,700 million, operating profit of ¥120 million) remains unchanged, but the progress rate through the cumulative 3Q stands at 73.4% for revenue, while operating profit remains in loss territory; a significant improvement in profitability in the fourth quarter is essential to achieve the full-year target.
Growth Strategy
Strengthening group profitability through M&A, DX, and new business development, and executing the medium-term management plan (FY2025–FY2027, ending June)
Continuing to provide services responsive to the downsizing and diversification of funerals, along with cost management tailored to regional characteristics. Due to the impact of rising flower material prices and labor costs, cumulative operating profit for Q3 was ¥119 million (down 33.1% year-on-year), remaining challenging, but the policy is to continue maintaining a stable earnings base as a core business.
The system development business was transferred effective June 30, 2025, eliminating the factor causing losses. The operating loss in the Other segment improved to ¥43 million (compared with a loss of ¥53 million in the same period of the previous year). New sales from the Fertilizer Manufacturing and Sales Business have also begun to be recorded, and portfolio restructuring is progressing.
Through thorough cost control and operational efficiency improvements, cumulative operating profit for Q3 of FY2026 (ending June 2026) reached ¥8 million, achieving a turnaround to profitability. In Q3 alone, the number of events handled recovered to a level exceeding the previous year. The business will continue to respond to smaller-scale, higher-value-added events, aiming to transform into a segment that contributes to profits.
Under the basic policy of "enhancing group profitability and improving corporate value through the promotion of sustainability management," the company continues to pursue M&A, DX promotion, and new product development. The full-year earnings forecast for FY2026 (ending June 2026) (net sales of ¥7,700 million, operating profit of ¥120 million) remains unchanged; however, progress as of the cumulative Q3 results is significantly behind schedule, and catching up in Q4 is a key challenge for achieving the plan.
Last updated: July 17, 2026