Gift Holdings (9279) Q2 2024 earnings summary

Executive summary

• Net sales for the first half rose 26.3% year-on-year to ¥13,552 million, with operating profit up 51.3% to ¥1,545–1,546 million and net income up 45.2% to ¥1,054 million, driven by robust post-Covid recovery and aggressive new store openings.

• Record-high monthly sales per company-owned store achieved through quality and operational enhancements, with no negative impact from price increases.

• Continued expansion of both company-owned and produced stores domestically and overseas, supported by new brand launches.

• Upward revision of full-year earnings forecasts for net sales, operating profit, and net income due to strong progress.

• Tokyo Ramen Yokocho and digital transformation initiatives contributed to growth.

Financial highlights

• Net sales for the first half: ¥13,552 million (+26.3%); operating profit: ¥1,545–1,546 million (+51.3%); ordinary profit: ¥1,594–1,595 million (+51.6%); net income: ¥1,054 million (+45.2%).

• Gross profit increased to ¥9,185 million, with gross margin at 67.8%.

• Operating profit margin improved to 11.4% (annual goal: 9.5%).

• Net sales per man-hour at company-owned stores rose to ¥6,403 from ¥6,211 year-on-year.

• Basic EPS was ¥52.76 (adjusted for share split).

Outlook and guidance

• Full-year forecast revised: net sales ¥28,500 million (+3.3% to +24.0%), operating profit ¥3,000 million (+11.1% to +27.5%), net income ¥1,960 million (+12.0% to +22.7%), EPS ¥98.20.

• Annual dividend forecast is ¥18 per share, unchanged.

• Store opening plan unchanged: net increase of 39 company-owned stores and 48 franchise/produced stores for FY2024.

• Medium-term plan targets ¥40 billion net sales and ¥3.8 billion operating profit by FY2026.