JTC Maintains Last Year's Provisional Revenue Level, Focuses on Restructuring Profit Structure

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Japanese duty-free store specialist JTC announced its provisional results for fiscal year (FY) 2025 (March 2025-February 2026) through a disclosure on April 15. On a consolidated basis, revenue stood at 301.91805 billion won, maintaining a similar level to the previous year. Operating profit recorded 7.24832 billion won, while net profit reached 5.680811 billion won.

In the fourth quarter, heightened diplomatic tensions between Japan and China led to a decline in demand from Chinese group tourists, placing pressure on performance. However, solid results accumulated through the third quarter helped offset much of this impact. As a result, annual revenue managed to maintain last year's level without a significant drop.

The company stated, "We believe a quick recovery in demand from Chinese group tourists is unlikely," adding, "Therefore, we are both strengthening the core of our existing business and diversifying customer nationalities to include Korea, Taiwan, and Southeast Asia, while also bolstering land operator sales activities."

The decrease in operating profit was mainly due to the inclusion of other operating expenses. These included impairment losses of approximately 9.5 billion yen, foreign exchange losses of about 3.1 billion yen, and losses on disposal and abandonment of tangible assets totaling roughly 870 million yen, resulting in overall expenses amounting to 16.2 billion yen. The company explained that these measures reflected a conservative revaluation of asset values to proactively address potential risks, describing it as a strategic decision to prepare for an uncertain business environment.

JTC has also begun structural reforms in preparation for FY26, considering the possibility of a prolonged gap in revenue from Chinese tourists. Since the fourth quarter of last year, the company has been implementing organizational efficiency measures, such as workforce adjustments, and has closed or suspended operations at underperforming stores, thereby reorganizing its overall operational structure. These steps are seen as proactive preparations to secure profitability and generate new sources of revenue.

The company continues to pursue its shareholder return policy. On April 6, it completed a buyback of treasury shares worth 15 billion won, and all acquired shares will be retired following a resolution by the board of directors.

JTC CEO Fumiya Yamamoto commented, "The fourth quarter was a period focused on strengthening our business fundamentals through rigorous workforce restructuring and cost reductions, laying the foundation for sustainable management. Although uncertainty is expected to continue this year, we aim to take a step forward by enhancing competitiveness and creating new sources of revenue."

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