Tea Life, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 40% Decrease

Tea Life Co.,Ltd <3172> [TSE Std] announced its financial results in the afternoon session on June 4th (15:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending July 2026 (August 2025 to April 2026) decreased 24.6% from the same period last year to 208 million yen.

In addition, the full-year forecast for consolidated ordinary profit has decreased 48.8%, from the previous forecast of 529 million yen to 271 million yen (compared to 453 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 40.2% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the February to July period (second half) has decreased 71.5%, from the previous forecast of 361 million yen to 103 million yen (compared to 233 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 55.8% decrease in profit.

In the most recent three-month period, from February to April (3Q), the consolidated ordinary profit decreased to 40 million yen, a 28.6% decrease compared to the same period last year. The operating profit margin worsened from 2.5% in the same period last year to 1.4%.

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