Gift Holdings (9279) investor relations material

Executive summary

• Net sales for H1 FY10/2026 reached ¥21,239 million, up 23.5% year-over-year, with operating profit at ¥2,640 million, up 70.6% year-over-year, and profit attributable to owners of parent at ¥1,762 million, up 70.7% year-over-year.

• Strong performance driven by improved store quality, extended operating hours, optimized procurement, and new store openings, with H1 results exceeding both prior-year and revised forecasts.

• International expansion continued, with profitability improving in overseas stores and brand recognition boosted by winning the Grand Prix at the Shanghai Ramen Championship.

• Strategic supply chain management and flexible pricing helped offset rising costs in labor, raw materials, and logistics.

• The company expanded its domestic and overseas footprint, reaching 303 total stores, including 294 company-owned and 20 overseas franchise stores.

Financial highlights

• Operating margin for H1 was 12.4%, surpassing the full-year target of 10.0%.

• Gross profit increased to ¥6,819 million from ¥5,768 million year-over-year.

• H1 profit attributable to owners of parent was ¥1,762 million, up 70.7% year-over-year.

• Cash flows from operating activities rose to ¥2,996 million, while investing activities used ¥2,481 million.

• Net assets increased to ¥12,106 million, with an equity-to-asset ratio of 49.8%.

Outlook and guidance

• Full-year FY10/2026 forecast revised upward: net sales ¥43,900 million, operating profit ¥4,800 million, ordinary profit ¥4,770 million, and profit attributable to owners of parent ¥2,880 million.

• Annual dividend forecast raised to ¥26.00 per share.

• H2 plan remains unchanged due to risks from Middle East instability and potential upfront investments.

• Targeting 20%+ revenue growth, 10%+ operating margin, and 20%+ ROE over the medium term.

• Management notes ongoing risks from global economic uncertainty, cost pressures, and labor shortages.