Beauty Kadan Holdings Co.,Ltd.

Business Details

Produces altars and Kuge (Funeral Flowers) using only fresh flowers for funeral-related companies, including installation, and sells them. Main affiliated companies are Beauty Kadan East Japan Co., Ltd., Beauty Kadan West Japan Co., Ltd., and Kajitoki Co., Ltd. Offers a wide range from highly designed original altars to low-cost mass-production altars, and is characterized by providing the same service nationwide while incorporating regional characteristics. This is the core segment accounting for the majority of group net sales.

Recent Overview

Both net sales and profit declined year on year, as rising flower material and labor costs pressured earnings

For the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), net sales were ¥3,047 million (down 2.7% year on year) and operating income was ¥119 million (down 33.1% year on year). The number of funerals conducted trended slightly lower, and altar unit prices varied by region and season. Rising flower material and labor costs pressured earnings. In the funeral industry, while small-scale funerals continue to become established and funeral formats diversify, funeral unit prices are on a gradual downward trend nationwide. Note that publication of official statistics on the funeral industry ended as of the prior fiscal year, and no new statistical data currently exists.

Key Products

Growth Drivers

• Increasing trend in the annual number of deaths against the backdrop of an aging society
• Introduction of new products and services responding to the downsizing and diversification of funerals
• Strategic policy of expanding existing business areas, including through M&A
• Improved operational efficiency and profit margins through DX promotion (development of a web ordering system and CRM integration)
• Sustained certain demand for staging and floral decoration (signs of demand recovery in the ceremonial occasions field)

Risks

• Rising procurement costs due to persistently high flower material prices (including imported materials)
• Rising labor costs and increased costs for handling peak periods
• Nationwide downward trend in funeral unit prices due to the spread of small-scale funerals such as family funerals, private funerals, and one-day funerals
• Risk of rising imported flower material prices due to yen depreciation
• Declining trend in the number of funerals conducted
• Risk of impairment of fixed assets (an impairment loss was recorded in FY2025 (ended June 2025))