Ichibanya (7630) Q4 2024 earnings summary

Executive summary

• FY24 revenue rose 14.2% YoY to ¥55,137 million; operating profit increased 30.5% to ¥4,715 million, while parent-attributable net income rose 5.8% to ¥2,685 million.

• Domestic store sales grew 12.3% YoY; domestic and overseas store sales combined reached ¥105,455 million, up 14.3%.

Financial highlights

• FY24 ordinary profit was ¥5,021 million, up 24.2% YoY; profit before tax was ¥4,327 million, up 10.2%.

• Operating profit increased ¥1,101 million YoY; franchise wholesale price increases contributed ¥2,516 million, partly offset by higher ingredient costs of ¥1,722 million.

• Parent-attributable net income increased ¥147 million YoY; the bridge included lower subsidy income of ¥246 million and impairment losses that were ¥507 million lower.

Outlook and guidance

• FY25 revenue is forecast at ¥61,500 million (+11.5% YoY), operating profit at ¥5,200 million (+10.3%), ordinary profit at ¥5,400 million (+7.5%), and parent-attributable net income at ¥3,100 million (+15.4%).

• FY25 domestic store sales are forecast to rise 7.7%; combined domestic and overseas store sales are forecast at ¥114,400 million, up 8.5%.

• Domestic CoCo Ichibanya same-store sales assumptions are 105.9% YoY, comprising customer count of 103.1% and average spend of 102.7%.

• FY25 operating profit plan includes a ¥1,025 million ingredient-cost increase YoY and a ¥1,950 million benefit from higher wholesale prices to franchisees.

• Overseas business operating profit is forecast to rise ¥315 million YoY to ¥990 million; domestic subsidiary operating profit is forecast to increase ¥432 million to ¥601 million.