ENVALITH
株式会社cotta logo

cotta CO.,LTD

3359・Growth Market・Wholesale Trade

Official website
株式会社cotta logo
cotta CO.,LTD3359

Business

cotta Co., Ltd. is a company based in Oita Prefecture, listed on the TSE Growth Market. Since its founding, the company has upheld a policy of "small lots, short delivery times, and low prices," and its core business is the Confectionery & Bakery Materials and Sundries Sales Business, which provides confectionery and bakery materials to BtoB customers (individually run Japanese and Western confectionery shops, etc.) and BtoC customers (general consumers) through the online shopping site "cotta." In fiscal 2024, the company successively made subsidiaries of TERAZ (acquiring 66.7% of shares), which operates the System Engineering Service (SES) business, and Works Group (acquiring all shares), which has a nationwide customer base of over 200,000 beauty salons and barbershops, expanding to a structure of 9 consolidated subsidiaries. Net sales reached ¥13,676 million in the fiscal year ended September 2025, a 52.8% increase year-on-year, marking the company's transformation into a diversified group.

Business Model

The core Confectionery & Bakery Materials Business centers on the online shopping site "cotta," handling the procurement, manufacturing, and sale of confectionery and bakery materials, securing a gross profit margin of 29.7%. The Human Resources Solutions Business earns matching fees through remote-SES-focused job matching. The Beauty-related Products Sales Business conducts catalog-based wholesale to beauty and hair salons, leveraging an inventory of over 2 million SKUs to generate long-tail revenue. The structure aims to have TERAZ's engineering capabilities internally support the EC and DX transformation of each business.

Company Strengths

The Online Shopping Site "cotta," launched in 2006, boasts over 250,000 downloads of its official app and has penetrated both the BtoB and BtoC markets. Through the opening up of "cotta Business" and the introduction of a loyalty program, the number of active users and visits has increased, and the Confectionery & Bakery Materials and Sundries Sales Business recorded net sales of ¥8,932 million in FY2025 (ending September 2025).

Works Group's main customers are hair and beauty salons nationwide, and its strength lies in a long-tail product lineup backed by a customer base of over 200,000 accounts and an inventory of approximately 2 million items. Thanks to industry-leading purchasing volume and an established delivery system, the company maintained solid performance even amid rising prices, achieving net sales of ¥3,401 million in FY2025 (ending September 2025).

The company made TERAZ (SES business) a subsidiary in October 2024, followed by Works Group (beauty wholesale) in November of the same year, expanding sales scale by 52.8% year-on-year to ¥13,676 million. It has designed internal synergies by leveraging TERAZ's engineering capabilities to accelerate EC and DX in the Confectionery & Bakery Materials and Sundries Sales Business and the beauty-related business.

ENVALITH's Perspective

In the interim period of FY2026 (ending March 2026), net sales came to ¥8,419 million (up 22.3% year on year) and operating profit reached ¥647 million (up 17.7% year on year), achieving increased revenue and profit, which the company describes as progress exceeding the initial plan. Against the full-year forecast (net sales of ¥15,109 million, operating profit of ¥812 million), the interim progress rate stands at 55.7% for net sales and 79.8% for operating profit, a high level on the profit side. However, the Beauty-related Products Sales Business, which grew 111.5% year on year, may see a reaction/pullback in the second half, and the underlying strength of the second half needs to be assessed.

As of the end of the interim period of FY2026 (ending March 2026), goodwill of ¥1,100 million and customer-related assets of ¥1,266 million bring total intangible fixed assets to ¥2,558 million, accounting for approximately 24% of total assets of ¥10,700 million. Meanwhile, long-term borrowings (including the portion due within one year) decreased by ¥256 million from the previous fiscal year-end to ¥2,429 million, and cash flow from financing activities was an outflow of ¥371 million (versus an inflow of ¥2,672 million in the same period of the previous year), indicating a shift from reliance on borrowing to an autonomous repayment phase. The equity ratio also improved to 44.1% (from 41.5% at the previous fiscal year-end), confirming a trend toward improved financial soundness.

Effective May 11, 2026, Works acquired 51% of the shares of MedMarge (deemed acquisition date: June 30, 2026). While first-year transaction volume is expected to reach approximately ¥1.9 billion, the acquisition cost, goodwill amount, and assets/liabilities to be assumed remain undetermined and undisclosed at this time. While the strategic rationale for expanding into beauty medicine services (such as AGA treatment) leveraging beauty salon channels is understandable, uncertainties remain regarding medical-related regulatory risk and business launch costs. Disclosure content from the third quarter onward needs to be closely examined.

Growth Strategy

Pursuing sustainable growth through group-wide horizontal deployment of EC/DX know-how and diversification into different industries via M&A

Strengthening upsell and cross-sell measures through expanded marketing functions following the EC site renewal and PB product rebranding. Segment profit turned positive in the first half of FY2026 (ending September 2026), and the company assesses PMI progress as extremely favorable.

In March 2026, the company opened its first Permanent Flagship Store "cotta STORE OIMACHI TRACKS" and launched the new brand "PECOTTA." The company aims to build a mutually reinforcing growth structure between EC and physical stores to significantly expand the market.

The "cotta Business Fair" held in January 2026 was a great success, attracting 2,161 visitors over two days. It functions as a venue for solving challenges faced by small businesses struggling with labor shortages and rising raw material costs, and the company aims to continue expanding its BtoB customer base.

Strengthening the high-margin recruitment placement business alongside the core System Engineering Service (SES) business. Through early productivity gains among newly hired sales staff, segment profit expanded rapidly to ¥34 million in the first half of FY2026 (ending September 2026), up 130.4% year on year, and is expected to contribute to improving overall profitability.

Leveraging the Works Group's network of over 200,000 beauty salons nationwide, the company is building a system for referring and collaborating on aesthetic medical services such as AGA treatment. The first-year transaction volume is expected to be approximately ¥1.9 billion. The deemed acquisition date is June 30, 2026, and consolidation effects are expected to be reflected from the third quarter onward.

Last updated: July 17, 2026