Food & Life Companies (3563) Q2 2025 earnings summary

Executive summary

• Achieved record-high first-half FY2025 revenue of JPY 203.814 billion, up 15.8% year-over-year, with operating profit up 58.9% to JPY 19.535 billion and profit for the period up 63.1% to JPY 11.869 billion, driven by robust domestic and international growth.

• Store count increased by 50 to 1,174, reflecting significant expansion in both Japan and overseas markets.

• Sushiro brand maintained high like-for-like revenue at 107.2%, supported by brand reinforcement and operational enhancements.

• International business, especially Mainland China, showed significant recovery and contributed to profit growth.

• Upward revision of full-year FY2025 forecast and dividend, reflecting strong first-half performance and improved outlook.

Financial highlights

• EBITDA reached JPY 27.126 billion, up 47.3% year-over-year, with margin improving to 13.3%.

• Operating profit margin improved to 9.6% from 7.0% year-over-year; profit margin rose to 5.8% from 4.1%.

• Cash at hand stood at JPY 47.336 billion; equity ratio improved to 22.3%.

• Dividend increased to JPY 30 per share for FY2025, including a commemorative dividend.

• Basic EPS rose to 104.91 yen from 62.91 yen a year earlier.

Outlook and guidance

• FY2025 revenue forecast revised upward to JPY 416 billion (+15.2% YoY); operating profit forecast raised to JPY 32.5 billion (7.8% margin).

• OP margin guidance increased from 6.4% to 7.8%; ROE target raised to 22%.

• Continued focus on store expansion, targeting 240 international stores by year-end and 320 by FY2026.

• Adjusted EBITDA for the full year projected at 46,500 million yen (+24.0%), and basic EPS at 167.94 yen.