Gift Holdings (9279) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended July 31, 2026, reached ¥32,270 million, up 23.6% year-over-year, with operating profit at ¥3,719 million, up 56.5% year-over-year, and profit attributable to owners of parent up 55.9% to ¥2,457 million.

• Strong performance was driven by improved store quality, extended operating hours, enhanced production efficiency, and aggressive expansion in Japan and overseas, notably in China, North America, and Europe.

• Strategic focus included optimizing supply chain management, expanding in-house production, and promoting digital transformation through AI-driven management systems.

• International expansion continued, with 47 overseas stores (+11 YoY), and profitability improving at international company-owned stores.

• Added to FTSE Russell ESG-related indices, reflecting strong ESG performance.

Financial highlights

• Gross profit margin improved to 67.9% from 66.7% year-over-year, with gross profit increasing to ¥21,924 million from ¥17,406 million.

• Operating margin rose to 11.5% (full-year target: 10.0%), and operating profit up 56.5% year-over-year.

• Quarterly profit attributable to owners of parent increased 55.9% year-over-year to ¥2,457 million.

• Basic earnings per share for the period was ¥61.32, reflecting a 2-for-1 share split effective September 1, 2026.

• Store count increased to 957, up 56 from the previous year-end.

Outlook and guidance

• Full-year forecast for FY2026: net sales projected at ¥43,900 million (+22.4% YoY), operating profit at ¥5,000 million (+48.5% YoY), profit attributable to owners at ¥3,020 million (+38.2% YoY), and EPS ¥75.32.

• Annual dividend forecast raised to ¥14.5 per share, targeting a payout ratio of 20% or higher.

• Continued solid Q4 performance expected, with H2 plan unchanged to accommodate potential upfront investments.

• The company aims to capture a 50% share of the global ramen market, focusing on direct operations in major markets and franchise expansion in Asia.