Food & Life Companies (3563) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY25 rose 15.9% year-over-year to JPY 99,141 million, with profit for the period up 88.2%.

• EBITDA increased 42.2% year-over-year, and operating profit rose 56.4%.

• Store count reached 1,163 at the end of Q1 FY25, with 19 new stores opened and 11 closed during the quarter.

• Growth was driven by strong performance in both domestic and overseas Sushiro businesses, despite sector challenges from rising costs and labor shortages.

Financial highlights

• Gross margin improved as COGS ratio decreased by 1.5 percentage points year-over-year.

• Operating profit margin rose to 9.7% from 7.2% year-over-year.

• Adjusted EBITDA margin increased to 13.1% from 10.7% year-over-year.

• Basic EPS more than doubled to 54.18 yen from 28.15 yen year-on-year.

• Total comprehensive income for the period surged 200.1% to 8,559 million yen.

Outlook and guidance

• FY25 full-year revenue forecast is JPY 408,000 million, up 13% from FY24.

• Operating profit for FY25 is projected at JPY 41,800 million, an 11.5% increase year-over-year.

• 100–110 new store openings planned for FY25.

• Annual dividend forecast for FY2025 is 30.00 yen per share.

• No changes to previously announced earnings forecasts; actual results may differ due to economic trends.