Yoshinoya Holdings (9861) Q1 2025 earnings summary

Executive summary

• Sales/revenue increased 7.4% year-over-year in the first quarter to ¥47.54 billion, driven by domestic growth and new store openings, but operating profit fell 38.6% and net profit declined 33.5% due to higher labor, supplies, and M&A costs.

• 36 new stores opened (12 domestic, 24 international), with a net increase of 6 stores, bringing the total to 2,772 (domestic: 1,770; overseas: 1,002).

• Acquisition of Takara Sangyo Co., Ltd. in May 2024 as part of M&A strategy, with revenue contribution starting from the second quarter.

• Operating profit declined to ¥880 million, and net income attributable to shareholders fell to ¥681 million.

• Segment growth led by domestic and overseas expansion, but profitability pressured by rising expenses and economic headwinds.

Financial highlights

• First quarter sales: ¥47.54 billion (+7.4% YoY); gross profit: ¥30.85 billion (+7.5% YoY); operating profit: ¥880 million (-38.6% YoY); net profit: ¥681 million (-33.5% YoY).

• EBITDA for the quarter was ¥2.48 billion, down 16.6% year-over-year.

• Capital/equity ratio at 53.6%, up from the previous period.

• Net assets increased to ¥61.49 billion.

• Interest-bearing debt rose to ¥19.43 billion, up ¥1.0 billion.

Outlook and guidance

• Annual sales/revenue forecast remains at ¥203.0 billion (+8.3% YoY); operating profit forecast at ¥7.0 billion (-12.2% YoY); net income forecast at ¥4.1 billion (-26.8% YoY).

• Annual dividend planned at ¥20 per share.

• No changes to previously announced guidance.