Genki Global Dining Concepts (9828) Q2 2025 earnings summary

Executive summary

• Achieved record-high sales and profits in 1H FY3/2025, driven by increased customer numbers, price optimization, and successful marketing initiatives.

• Domestic business saw increased customer numbers and higher unit prices, while global business benefited from sales recovery in Hong Kong and Singapore and yen depreciation.

• EPS rose to 145.66 yen, up 59.32 yen year-over-year.

• Management changes included a new president, trade name change, Tokyo HQ function start, and investment in human resources.

Financial highlights

• 2Q FY3/2025 net sales: ¥33.8B (+9.2% YoY); gross profit: ¥20.3B (+12.6% YoY); operating profit: ¥3.9B (+62.4% YoY).

• EBITDA increased 42.8% YoY to ¥4.88B; interim net profit rose 68.7% YoY to ¥2.57B.

• EPS for 2Q: 145.66 yen, reflecting a 2-for-1 stock split.

• Gross profit margin improved to 60.2% (from 58.4% YoY).

Outlook and guidance

• FY3/2025 full-year forecast: net sales ¥66.8B (+8.0% YoY), operating profit ¥6.3B (+28.1% YoY), net profit ¥4.1B (+25.7% YoY), EPS 232.20 yen.

• Operating profit margin expected to rise to 9.4% from 8.0% last year.

• Domestic profit growth to moderate in 2H due to higher COGS (especially rice), increased labor costs, and end of electricity subsidies.

• Global business 2H sales revised down due to U.S. store closures; profit to decline from higher costs and investments.