Genki Global Dining Concepts (9828) investor relations material

Executive summary

• Revenue increased 9.2% year-over-year to ¥73,711 million, but operating profit fell 29.4% to ¥4,797 million due to higher raw material costs.

• Net income attributable to shareholders decreased 29.6% year-over-year to ¥3,492 million.

• Domestic business saw higher sales but lower segment profit due to rising rice and labor costs; global business achieved modest sales and profit growth.

• Group strengthened procurement by acquiring Godac, Kobe Marukan, and entering salmon aquaculture.

Financial highlights

• Gross margin declined as cost of goods sold rose sharply.

• Operating cash flow was ¥4,551 million, down from ¥6,787 million year-over-year.

• Cash and equivalents at year-end rose to ¥28,492 million, mainly due to increased borrowings.

• Total assets increased to ¥59,484 million, with equity ratio dropping to 32.6%.

• Annual dividend maintained at ¥70 per share.

Outlook and guidance

• FY2027 revenue forecast is ¥103,000 million (+39.7% YoY), operating profit ¥6,000 million (+25.1%), but net income expected to decline 5.5% to ¥3,300 million.

• Management expects continued cost pressures from global inflation, energy, and labor.

• Focus remains on procurement, marketing, and domestic/global store expansion.