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Financial results presentation3175AP HOLDINGS CO.,LTD.Retail

First-quarter financial results for the fiscal year ending March 2027

In Q1 of the fiscal year ending March 2027, revenue decreased 1.8% year on year and operating profit decreased 47.4%. Meanwhile, sales at existing domestic stores and in the prepared-foods business increased. The company continued upfront investments, including format changes and factory expansion, while leaving its full-year forecast unchanged.

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76Important
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Direction
Mixed performance
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Scale
-83
Millions of yen (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,277 million-1.8%
Operating profit¥91 million-47.4%
Ordinary income¥56 million-47.8%
Net income¥45 million-91.4%
Selling, general and administrative expenses¥3,254 million
Gross Profit Margin63.4% (64.0% in the prior period)
Operating profit margin1.7% (3.2% in the prior period)
Results for the three months of the current quarterRevenue: ¥5,277 million; operating profit: ¥91 million; ordinary profit: ¥56 million; profit attributable to owners of the parent: ¥45 million; EBITDA: ¥172 million
Full-year earnings forecast
Net Sales
¥22,000 million
Operating profit
¥860 million
Ordinary income
¥740 million
Profit attributable to owners of the parent
¥585 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 Sales24.0%
Operating profit10.6%
Ordinary income7.6%
Profit attributable to owners of the parent7.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 performance was in line with the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The absence of approximately ¥140 million in sales following the sale of Real Taste; withdrawal from unprofitable stores and transfer of licenses; the impact of the typhoon in June; and upfront investments, including format changes and factory expansion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Seasonality causes profits to be concentrated in the second half, particularly Q3. Profit is typically limited in Q1.
New initiatives
Installation of an automated rice-cooking line at a new prepared-foods factory; expansion of production capacity at existing factories; format changes at 4 stores; expansion of domestic licensing and production operations; AI pilot projects and AI training; an internal job-posting, internal FA, and hybrid system; and a third-party allotment of new shares
Key KPIsA metric the company considers important as a management benchmark.
  • Year-on-year sales at existing domestic stores103.1 %
    Year on year against the same period last year102.7% of the prior period
  • EBITDA¥172 million
    Year on year against the same period last year-36.3%
  • Equity ratio12.8 %
    Year on year against the same period last year14.0% at the end of the prior period
  • EPS¥-1.01
    Year on year against the same period last year¥37.15 in the prior period
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Customer traffic and average spend per customer at existing domestic stores both exceeded the prior year. At Sumire Tsukada Farm charcoal-grilled yakitori restaurants, both customer traffic and average spend per customer exceeded the prior year.
Segment results
Domestic food service business
Net Sales
¥3,605 million-3.9%
Operating profit
¥319 million-19.8%
Prepared-food business
Net Sales
¥941 million+16.2%
Operating profit
¥66 million-27.5%
International foodservice business
Net Sales
¥477 million-12.8%
Operating profit
¥-0.6 million
Production and distribution business
Net Sales
¥408 million+7.1%
Operating profit
¥31 million+53.0%
Medium-term management plan targets
VISION 2031 targets consolidated revenue of ¥43.0 billion and operating profit of ¥3,000–4,500 million. The prepared-foods business targets revenue of ¥7.0 billion and operating profit of ¥600–800 million; the production and distribution business targets revenue of ¥5.0 billion; and the domestic licensing and production business targets revenue of ¥1.5 billion, operating profit of ¥500–700 million, and 70 stores.
Financial targets
Net interest-bearing debt/EBITDA: approximately 2.8x in FY2026 and 3–4x in FY2031. The equity ratio is expected to improve to approximately 15.5% following the capital increase.
Market Size / Share
The mid-priced market is ¥5.6 trillion. Sales share: izakaya 28.9%, specialty restaurants 19.5%, restaurants 19.4%, overseas food service 9.0%, prepared foods 17.7%, and production and distribution 5.6%.
Number of stores and locations
140 company-operated stores, down 7 year on year and down 3 from the end of the prior period. No new stores were opened in Q1. 4 stores underwent format changes, and 3 stores underwent format conversions and were converted to licensed stores.
Capital expenditures
¥150 millions capital investment associated with new store openings
Annual Dividend
No dividend has been paid to common shareholders as of the present time.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥5,277 million (YoY -1.8%)
Operating profit¥91 million (YoY -47.4%)
Ordinary income¥56 million (YoY -47.8%)
Net income¥45 million (YoY -91.4%)
Gross Profit Margin63.4% (64.0% in the prior period)
Operating profit margin1.7% (3.2% in the prior period)
Selling, general and administrative expenses¥3,254 million
Results for the three months of the current quarterRevenue: ¥5,277 million; operating profit: ¥91 million; ordinary profit: ¥56 million; profit attributable to owners of the parent: ¥45 million; EBITDA: ¥172 million
Full-year earnings forecastNet Sales ¥22,000 million / Operating profit ¥860 million / Ordinary income ¥740 million / Profit attributable to owners of the parent ¥585 million
Progress against full-year forecastNet Sales 24.0% / Operating profit 10.6% / Ordinary income 7.6% / Profit attributable to owners of the parent 7.7%
Self-assessment against the planQ1 performance was in line with the plan
Segment resultsDomestic food service business Net Sales ¥3,605 million (YoY -3.9%) / Operating profit ¥319 million (YoY -19.8%) / Prepared-food business Net Sales ¥941 million (YoY +16.2%) / Operating profit ¥66 million (YoY -27.5%) / International foodservice business Net Sales ¥477 million (YoY -12.8%) / Operating profit ¥-0.6 million / Production and distribution business Net Sales ¥408 million (YoY +7.1%) / Operating profit ¥31 million (YoY +53.0%)
Breakdown of Factors Affecting the ChangeThe absence of approximately ¥140 million in sales following the sale of Real Taste; withdrawal from unprofitable stores and transfer of licenses; the impact of the typhoon in June; and upfront investments, including format changes and factory expansion
Key KPIsIndicator name Year-on-year sales at existing domestic stores / Value 103.1 % / Year on year against the same period last year 102.7% of the prior period, Indicator name EBITDA / Value ¥172 million / Year on year against the same period last year ¥-36.3 million, Indicator name Equity ratio / Value 12.8 % / Year on year against the same period last year 14.0% at the end of the prior period, Indicator name EPS / Value ¥-1.01 / Year on year against the same period last year ¥37.15 in the prior period
Unit price and quantity metricsCustomer traffic and average spend per customer at existing domestic stores both exceeded the prior year. At Sumire Tsukada Farm charcoal-grilled yakitori restaurants, both customer traffic and average spend per customer exceeded the prior year.
Number of stores and locations140 company-operated stores, down 7 year on year and down 3 from the end of the prior period. No new stores were opened in Q1. 4 stores underwent format changes, and 3 stores underwent format conversions and were converted to licensed stores.
Assumptions Underlying the Business OutlookSeasonality causes profits to be concentrated in the second half, particularly Q3. Profit is typically limited in Q1.
Medium-term management plan targetsVISION 2031 targets consolidated revenue of ¥43.0 billion and operating profit of ¥3,000–4,500 million. The prepared-foods business targets revenue of ¥7.0 billion and operating profit of ¥600–800 million; the production and distribution business targets revenue of ¥5.0 billion; and the domestic licensing and production business targets revenue of ¥1.5 billion, operating profit of ¥500–700 million, and 70 stores.
Financial targetsNet interest-bearing debt/EBITDA: approximately 2.8x in FY2026 and 3–4x in FY2031. The equity ratio is expected to improve to approximately 15.5% following the capital increase.
Annual DividendNo dividend has been paid to common shareholders as of the present time.
Capital expenditures¥150 millions (capital investment associated with new store openings)
Market Size / ShareThe mid-priced market is ¥5.6 trillion. Sales share: izakaya 28.9%, specialty restaurants 19.5%, restaurants 19.4%, overseas food service 9.0%, prepared foods 17.7%, and production and distribution 5.6%.
New initiativesInstallation of an automated rice-cooking line at a new prepared-foods factory; expansion of production capacity at existing factories; format changes at 4 stores; expansion of domestic licensing and production operations; AI pilot projects and AI training; an internal job-posting, internal FA, and hybrid system; and a third-party allotment of new shares
Items this document does not state (6)
Number of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders 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.

Revenue declined due to the absence of sales from the sale of Real Taste, the withdrawal from unprofitable stores and transfer of licenses, and the impact of the typhoon in June. Operating profit was affected by the absence of the prior period's cost controls, as well as upfront investment costs for opening 4 stores following format changes, dismantling tatami seating at izakaya restaurants, and expanding factories. Net profit declined due to the absence of the ¥438 million gain on the sale of shares in an affiliated company recorded in the prior period.

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First-quarter financial results for the fiscal year ending March 2027 | AP HOLDINGS CO.,LTD. (3175) timely disclosure | Komori