Food & Life Companies (3563) Q3 2024 earnings summary

Executive summary

• Q3 FY24 revenue rose 20.9% year-over-year to ¥264,667 million, with operating profit up 118.6% and profit for the period at ¥10,371 million (+82.8%).

• Overseas business drove significant gains, with revenue up 40.5% year-over-year, especially in Hong Kong, Thailand, and Mainland China.

• Japan Sushiro segment showed robust recovery, contributing to overall profit growth.

• Group store count increased to 1,137, with 55 openings and 41 closures during the nine-month period.

• Recovery in customer traffic post-COVID, but faced headwinds from rising resource prices, yen depreciation, and higher labor costs.

Financial highlights

• Q3 FY24 revenue: ¥264,667 million (+20.9% YoY); EBITDA: ¥27,403 million (+55.3% YoY); operating profit: ¥17,341 million (+118.6% YoY); profit for the period: ¥10,371 million (+82.8% YoY).

• Basic earnings per share rose to ¥89.89 from ¥49.03 a year earlier.

• COGS ratio improved by 1.5pt YoY; store count increased by 18 to 1,137.

• Overseas revenue reached ¥65,954 million (+40.5% YoY), with EBITDA up 43.6% to ¥11,455 million.

• Cash flow from operating activities was ¥40,232 million (+45.9% YoY); investing activities used ¥15,718 million, and financing activities used ¥28,402 million.

Outlook and guidance

• FY24/9 forecast: revenue ¥360,000 million (+19.3% YoY), operating profit ¥22,000 million (+100% YoY), profit for the period ¥13,000 million (+64.6% YoY), EPS ¥112.36.

• COGS expected to decrease to 43.6% of revenue; new store openings forecast at 85–90.

• Dividend forecast at ¥22.5 per share for FY24/9; shareholder benefit program to be expanded.

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