Ichibanya (7630) Q2 2024 earnings summary

Executive summary

• Q2 FY24 revenue rose 17.3% YoY to ¥26,822m; operating profit increased 87.2% to ¥2,467m, supported by stronger domestic sales and improved overseas results.

• Domestic existing-store sales were 113.6% of prior-year levels in H1, with customer count at 102.6% and average spend at 110.8%.

Financial highlights

• Domestic store sales reached ¥43,198m, up 13.6% YoY; revenue increased ¥3,947m, operating profit ¥1,149m, ordinary profit ¥963m, and net income attributable to owners ¥396m.

• Pretax income was ¥2,240m, up 42.5% YoY; net income attributable to owners was ¥1,418m, up 38.8%.

• Operating profit was ¥657m above plan at ¥2,467m, reflecting higher sales and FC product sales; merchandise purchasing and manufacturing expenses were below plan by ¥76m and ¥85m, respectively.

Outlook and guidance

• FY24 revised forecast: revenue ¥55,100m, operating profit ¥4,900m, ordinary profit ¥5,150m, pretax income ¥4,650m, and net income attributable to owners ¥3,100m.

• Versus initial plan, revised revenue increased ¥2,100m (+4.0%) and operating profit ¥600m (+14.0%); net income attributable to owners increased ¥220m (+7.6%).

• Full-year domestic existing-store sales are projected at 111.2% of prior year, with customer count at 103.0% and average spend at 108.0%.

• Full-year raw-material costs are expected to rise ¥1,865m YoY, including curry spices +¥146m, pork shabu +¥117m, rice +¥110m, and sauce meat ingredients +¥98m.