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Financial results presentation274AGarden Co.,Ltd.Retail

Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027

Revenue increased 6.4% year on year, reaching a new quarterly record high. However, gross margin and profit declined significantly due to investments in initiatives to drive store visits and the acceleration of store openings.

Worth reading
80Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-343
¥ million (year-on-year decrease in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending February 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,786 million+6.4%
Operating profit¥184 million-65.1%
Ordinary income¥141 million-71.6%
Net income¥131 million-60.7%
Gross Profit Margin67.0%
Operating profit margin3.8%
Results for the three months of the current quarter
Net Sales¥4,786 million
EBITDA¥290 million
Operating profit¥184 million
Ordinary income¥141 million
Quarterly net income¥131 million
Full-year earnings forecast
Net Sales
¥20,350 million
EBITDA
¥2,030 million
Operating profit
¥1,410 million
Ordinary income
¥1,280 million
Net income for the current fiscal year
¥840 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales23.5%
EBITDA14.2%
Operating profit13.1%
Ordinary income11.0%
Net income for the current fiscal year15.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Although profit is behind schedule, the full-year forecast remains unchanged at this time
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increase in revenue+¥287 million
Cost of sales-¥218 million (including ¥76 million in higher costs from initiatives to drive store visits)
Personnel Expenses-¥161 million (including ¥4 million in strategic investments)
Rent-¥83 million (including ¥11 million in strategic investments)
Supplies expense-¥42 million (including ¥28 million in strategic investments)
Fees paid-¥23 million (including ¥18 million in strategic investments)
Credit card fees-JPY 10 million
Amortization of goodwill-¥9 million
Taxes and dues-JPY 7 million
Utilities expenses-¥7 million (including ¥1 million in strategic investments)
Depreciation and amortization-¥7 million (including ¥1 million in strategic investments)
Other SG&A expenses-¥59 million (including ¥10 million in strategic investments)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Store Opening PlanPlan for 230 stores in FY2027/2
Opening stores overseasPlans to open 1 local Yamashita Honki Udon store through a Thai joint venture
New initiatives
  • Hybrid store rollout combining Ikkakuya and Aburasoba Sohonten
  • Convert 63 existing stores to combined formats from April to June, with a target of 100 stores by 5 August
  • Overseas store openings through a Thai joint venture
  • Expand shareholder benefits to offer a choice between meal vouchers and digital gifts
Key KPIsA metric the company considers important as a management benchmark.
  • Store count212 Location
    Year on year against the same period last year+13 stores versus the end of the previous fiscal year
  • EBITDA margin6.1%
    Year on year against the same period last yearDown from 13.7% in the same period of the previous fiscal year
  • ROA4.8% or higher
  • ROE10.8% or higher
  • In-store sales at existing stores95.0%
    Year on year against the same period last yearApproximately -5.0 percentage points
  • In-store sales across all stores105.7%
    Year on year against the same period last yearApproximately +5.7 percentage points
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Existing stores
Dine-in average spend per customer100.5% (year on year)
Store Visitors94.6% (year on year)
All Stores
Dine-in average spend per customer101.1% (year on year)
Store Visitors104.5% (year on year)
Segment results
Ramen Business
Net Sales¥3,199 million
Year on year against the same period last year+4.5%
Udon and soba business
Net Sales¥822 million
Year on year against the same period last year+16.9%
Dining business
Net Sales¥365 million
Year on year against the same period last year-2.9%
Sushi business
Net Sales¥112 million
Year on year against the same period last year-4.6%
Franchise Business
Net Sales¥232 million
Year on year against the same period last year+23.8%
Real estate and other businesses
Net Sales¥54 million
Year on year against the same period last year+6.6%
Financial targets
ROAFY2027/2 target: 4.8% or higher (FY2026/2 actual: 3.8%)
ROEFY2027/2 target: 10.8% or higher (FY2026/2 actual: 8.0%)
Market Size / Share
The presentation includes graphs showing the market sizes for ramen, udon and soba, among others. It states that there are markets in which the leading chains have a combined share of more than 90%.
Number of stores and locations
Number of Stores at Period-End212 stores
Stores opened during the period7 stores (the stated breakdown is 3 company-operated and 10 franchised stores)
Stores closed during the period3 stores
Net increase13 stores
Number of employees
Permanent employees289 people
Part-time employees3,594 people
Annual Dividend
FY2027/2 forecast¥90
Interim Dividend¥45
Year-end dividend¥45
Payout ratio
40% or more
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending February 2027
Net Sales¥4,786 million (YoY +6.4%)
Operating profit¥184 million (YoY -65.1%)
Ordinary income¥141 million (YoY -71.6%)
Net income¥131 million (YoY -60.7%)
Gross Profit Margin67.0%
Operating profit margin3.8%
Results for the three months of the current quarterNet Sales ¥4,786 million / EBITDA ¥290 million / Operating profit ¥184 million / Ordinary income ¥141 million / Quarterly net income ¥131 million
Full-year earnings forecastNet Sales ¥20,350 million / EBITDA ¥2,030 million / Operating profit ¥1,410 million / Ordinary income ¥1,280 million / Net income for the current fiscal year ¥840 million
Progress against full-year forecastNet Sales 23.5% / EBITDA 14.2% / Operating profit 13.1% / Ordinary income 11.0% / Net income for the current fiscal year 15.7%
Self-assessment against the planAlthough profit is behind schedule, the full-year forecast remains unchanged at this time
Segment resultsRamen Business Net Sales ¥3,199 million / Year on year against the same period last year +4.5% / Udon and soba business Net Sales ¥822 million / Year on year against the same period last year +16.9% / Dining business Net Sales ¥365 million / Year on year against the same period last year -2.9% / Sushi business Net Sales ¥112 million / Year on year against the same period last year -4.6% / Franchise Business Net Sales ¥232 million / Year on year against the same period last year +23.8% / Real estate and other businesses Net Sales ¥54 million / Year on year against the same period last year +6.6% / Profit Not disclosed
Breakdown of Factors Affecting the ChangeIncrease in revenue +¥287 million / Cost of sales -¥218 million (including ¥76 million in higher costs from initiatives to drive store visits) / Personnel Expenses -¥161 million (including ¥4 million in strategic investments) / Rent -¥83 million (including ¥11 million in strategic investments) / Supplies expense -¥42 million (including ¥28 million in strategic investments) / Fees paid -¥23 million (including ¥18 million in strategic investments) / Credit card fees -JPY 10 million / Amortization of goodwill -¥9 million / Taxes and dues -JPY 7 million / Utilities expenses -¥7 million (including ¥1 million in strategic investments) / Depreciation and amortization -¥7 million (including ¥1 million in strategic investments) / Other SG&A expenses -¥59 million (including ¥10 million in strategic investments)
Key KPIsIndicator name Store count / Value 212 Location / Year on year against the same period last year +13 stores versus the end of the previous fiscal year, Indicator name EBITDA margin / Value 6.1% / Year on year against the same period last year Down from 13.7% in the same period of the previous fiscal year, Indicator name ROA / Value 4.8% or higher / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 10.8% or higher / Year on year against the same period last year Not disclosed, Indicator name In-store sales at existing stores / Value 95.0% / Year on year against the same period last year Approximately -5.0 percentage points, Indicator name In-store sales across all stores / Value 105.7% / Year on year against the same period last year Approximately +5.7 percentage points
Unit price and quantity metricsExisting stores Dine-in average spend per customer 100.5% (year on year) / Store Visitors 94.6% (year on year) / All Stores Dine-in average spend per customer 101.1% (year on year) / Store Visitors 104.5% (year on year)
Number of stores and locationsNumber of Stores at Period-End 212 stores / Stores opened during the period 7 stores (the stated breakdown is 3 company-operated and 10 franchised stores) / Stores closed during the period 3 stores / Net increase 13 stores
Number of employeesPermanent employees 289 people / Part-time employees 3,594 people / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookExchange rate Not disclosed / Raw Material Prices Not disclosed / Store Opening Plan Plan for 230 stores in FY2027/2 / Opening stores overseas Plans to open 1 local Yamashita Honki Udon store through a Thai joint venture
Financial targetsROA FY2027/2 target: 4.8% or higher (FY2026/2 actual: 3.8%) / ROE FY2027/2 target: 10.8% or higher (FY2026/2 actual: 8.0%) / ROIC Not disclosed / Debt-to-equity ratio Not disclosed / Equity ratio Not disclosed
Annual DividendFY2027/2 forecast ¥90 / Interim Dividend ¥45 / Year-end dividend ¥45
Payout ratio40% or more
Market Size / ShareThe presentation includes graphs showing the market sizes for ramen, udon and soba, among others. It states that there are markets in which the leading chains have a combined share of more than 90%.
New initiativesHybrid store rollout combining Ikkakuya and Aburasoba Sohonten, Convert 63 existing stores to combined formats from April to June, with a target of 100 stores by 5 August, Overseas store openings through a Thai joint venture, Expand shareholder benefits to offer a choice between meal vouchers and digital gifts
Items this document does not state (7)
Selling, general and administrative expensesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Higher cost of sales from initiatives to drive store visits, strategic investments in the acceleration of the store-opening plan, new stores, new formats and opening preparations, and higher SG&A expenses.

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This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027 | Garden Co.,Ltd. (274A) timely disclosure | Komori