ENVALITH
株式会社ダスキン logo

DUSKIN CO., LTD.

4665・Prime Market・Services

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株式会社ダスキン logo
DUSKIN CO., LTD.4665

Business

Duskin Co., Ltd. is a franchise-based lifestyle services company founded in 1963. In the Home Sales Group, centered on the rental of environmental hygiene products such as mats and mops (Clean Service Business), the company operates nationwide in a wide range of Care Service Business areas including house cleaning, housekeeping services, pest control, and nursing care equipment rental. In the Food Group, centered on Mister Donut, launched in 1971, the company also operates tonkatsu and Italian restaurants. With 38 domestic subsidiaries and 4 affiliated companies, the company also expands its business into Asia, including Taiwan, Malaysia, China, Hong Kong, and Singapore. Its main customers include both general households and businesses, and it has built a nationwide service delivery system through its franchise network.

Business Model

The Home Sales Group generates recurring revenue from renting mats, mops, and similar products to franchise stores, supported by a cycle of cleaning, regeneration, and re-supply. The Care Service Business is primarily driven by royalty income. The Food Group's revenue sources are raw material sales and royalty income from Mister Donut franchise stores, supplemented by directly operated and subsidiary stores. In all cases, as the franchise headquarters, the structure is such that growth in franchisee sales directly translates into the company's own earnings, and the company manages nationwide chain store customer sales (¥466,795 million in FY2026 (ending March 2026)) as its most important KPI.

Company Strengths

Since its founding in 1963, the company has built a nationwide sales network through the franchise system. In FY2026 (ending March 2026), customer sales at national chain stores reached ¥466,795 million, with all segments—Home Sales, Food, and Others—achieving increases from the previous fiscal year. Ongoing relationships with franchisees, based on long-term contracts (3 years for Home Sales, 5 years for Mister Donut), underpin the stability of the customer base.

Mister Donut, which marked its 55th anniversary since business launch in January 2025, benefited from higher customer spending due to price revisions and improved cost ratios. In FY2026 (ending March 2026), the Food Group achieved operating income of ¥10,023 million (operating margin of 14.5%), up 17.1% year on year. Customer traffic driven by collaboration products and anniversary campaigns, along with the expansion in the number of operating stores through new openings, are driving profitability.

The company operates a 45-member development research institute (comprising four divisions: basic research, applied research, dust control, and hygiene control), with R&D expenses of ¥624 million in FY2026 (ending March 2026). In February 2026, its measurement technology obtained certification compliant with international standards from the third-party organization NITE. The company continues to accumulate proprietary technologies that are difficult for competitors to imitate, such as chemical recycling technology for discarded mats and the development of lightweight, highly durable mops.

ENVALITH's Perspective

In FY2026 (ending March 2026), operating profit of the Home Sales Group was ¥5,639 million, down 1.4% year on year. The mechanism of recognizing initial costs in a lump sum due to shipments of the "Case-attached Mop Cleaner" exceeding plan weighed on profit. Since this product recognizes revenue monthly in line with rental contracts, future revenue recovery is expected, but the pace and scale of that recovery will be a focus for investors. For FY2027 (ending March 2026)... [forecast], operating profit of the Home Sales Group is projected at ¥6,800 million (+20.6%), a substantial increase, with the completion of the cost burden being the key factor.

The Food Group achieved an operating profit margin of 14.5% in FY2026 (ending March 2026), but operating profit for FY2027 (ending March 2027) is forecast to decline to ¥9,800 million (down 2.2% year on year). External factors such as rising raw material costs, labor costs, and expenses are anticipated, and the scope for price pass-through and consumer price sensitivity will be key to the sustainability of earnings. The expansion of the Mister Donut Business into the East China region (with the first store opening planned during FY2027, ending March 2027) represents a medium- to long-term growth option, but geopolitical risks and the burden of initial investment must also be considered.

ROE for FY2026 (ending March 2026) was 5.9%, a slight improvement from 5.8% in the previous period. The targets for the final year (FY2028, ending March 2028) of the "Mid-Term Management Policy 2028" are ROE of 7.0% or higher and profit attributable to owners of the parent of ¥10,600 million. The gap from the FY2026 (ending March 2026) actual result of ¥9,180 million is ¥1,420 million, and achieving the target via the FY2027 (ending March 2027) forecast of ¥9,800 million will require substantial profit growth in FY2028 (ending March 2028). The shareholder return policy of a dividend payout ratio of 60% or DOE of 3.0%, whichever is higher, is commendable, but balancing this with growth investment remains a challenge.

Growth Strategy

Under the "Do-Connect" strategy, the company aims to achieve ROE of 7% or higher by FY2028 (ending March 2028) through three axes—new transformation, evolution, and deepening—combined with strengthening its management foundation

The key-related rapid response service, "Rescue Service Business," began operations through franchise stores from January 2026. The company aims to expand to 100 or more locations nationwide by FY2028 (ending March 2028). This initiative embodies the "evolution" into adjacent businesses as a new revenue pillar for the Home Sales Group.

Targeting Shanghai, Zhejiang Province, Jiangsu Province, and Shandong Province, the company plans to open its first store during FY2027 (ending March 2027). Expansion possibilities into other Asian countries are also under consideration. This is positioned as a new growth option in overseas markets.

The company entered into a capital and business alliance agreement with Nosh, Inc., which operates the frozen delivery meal service "nosh," in July 2025, acquiring a portion of its outstanding shares. Consideration of new service development has begun, aiming for "new transformation" in the food domain.

The company aims to rebuild the core system of the Home Sales Group, while promoting company-wide the development of personnel to drive operational reform at each organizational unit and the review, standardization, and streamlining of business processes utilizing digital technology. The goal is to build an operational structure that does not rely excessively on people.

The company continues to reduce cross-shareholdings on an ongoing basis (sales were also conducted in FY2026, ending March 2026). It is advancing a review of decision-making processes and delegation of authority, and progressively introducing, starting with managerial positions, a personnel evaluation system based on KGIs and KPIs. This aims to achieve both improved capital efficiency and enhanced governance.

Last updated: July 19, 2026