OM2 Network (7614) Q4 2025 earnings summary

Executive summary

• Revenue increased to ¥32,778 million, up 2.1% year-over-year, driven by growth in the foodservice segment despite cost pressures.

• Operating income declined to ¥1,474 million, down 21.4% year-over-year, reflecting higher personnel, raw material, and logistics costs.

• Net income attributable to parent company shareholders was ¥1,098 million, a decrease of 17.7% year-over-year.

• The group expanded through acquisitions, adding Oota Sogo Foods and Yuwa, and adjusted its store network, ending with 148 retail and 49 restaurant locations.

• The business environment remained challenging due to rising costs, labor shortages, and economic uncertainty, but inbound and party demand supported restaurant sales.

Financial highlights

• Gross profit was nearly flat year-over-year at ¥12,646–12,647 million.

• Operating margin dropped from 5.8% to 4.5%.

• Cash and equivalents at year-end decreased by ¥2,251 million to ¥9,618 million.

• Free cash flow turned negative at ¥-1,173 million, mainly due to increased investment activities and subsidiary acquisitions.

• Dividend per share increased to ¥34, with a payout ratio of 20.7%.

Outlook and guidance

• Revenue for the next fiscal year is forecasted at ¥35,500 million, an 8.3% increase year-over-year.

• Operating income is projected to be ¥1,480 million, nearly flat year-over-year.

• Net income is expected to decline to ¥910 million, down 17.2% year-over-year.

• Dividend per share is forecasted to remain at ¥34.

• The company plans continued store optimization, new format development, and cautious expansion, focusing on profitability and diversification.