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Results presentation8163SRS HOLDINGS CO.,LTD.Retail

Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027

Revenue and store count increased following the addition of 京樽 (a sushi chain) as a subsidiary, while operating profit and ordinary profit declined due to sluggish growth in same-store customer traffic caused by unfavorable weather, as well as higher costs including personnel expenses. As a gain on negative goodwill was recognized in connection with the acquisition of 京樽, the full-year earnings forecasts for revenue and net income were revised upward, while those for operating profit and ordinary profit were revised downward.

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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
12
Year-on-year change (revenue, %)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Results presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales41,694 Million yen+12.0%
Operating profit1,088 Million yen-32.6%
Ordinary income1,017 Million yen-36.5%
Net income2,090 Million yen+143.0%
Gross Profit Margin65.5%
Operating profit margin2.6%
Selling, general and administrative expenses26,221 Million yen
Full-year earnings forecast
Net Sales
94,300 Million yen
Operating profit
2,600 Million yen
Ordinary income
2,400 Million yen
Profit attributable to owners of the parent
2,500 Million yen
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 Sales44.2%
Operating profit41.8%
Ordinary income42.4%
Interim net profit attributable to owners of the parent83.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is running ahead of the second-quarter plan. Operating profit and ordinary profit are expected to fall below the initial forecasts. Net income attributable to owners of the parent is expected to exceed the initial forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Contribution from M&AShown in the graph; individual amount 非開示 in the body text
  • New storesShown in the graph; individual amount 非開示 in the body text
  • Existing storesShown in the graph; individual amount 非開示 in the body text
  • Total year-on-year change in revenue4,482 Million yen
  • Total year-on-year change in operating profit-525 Million yen
New initiatives
  • Acquisition of all shares of 京樽 and making it a subsidiary
  • Considering the maximum use of 京樽's production plants within the group
  • More renovations at existing 和食さと (a Japanese restaurant chain) stores, extended operating hours and nighttime discounts
  • Development of new gourmet sushi store formats and openings in Gunma Prefecture
  • Strengthening the customer experience, employee productivity and shared group infrastructure through DX
  • Lowering the number of shares eligible for shareholder benefits, expanding the benefits and beginning their use at 京樽 stores
Key KPIsA metric the company considers important as a management benchmark.
  • Number of group stores958 Store
    Year on year against the same period last year172 stores added through making 京樽 a subsidiary
  • Number of directly operated store openings, including contracted stores24 Store
  • Progress toward the annual target for company-operated store openings60 %
  • Four-week sales after renovation at 和食さと (a Japanese restaurant chain)YoY +5% to +30%
    Year on year against the same period last yearIncreased
  • Customer traffic after 9 p.m.YoY +20% to +70%
    Year on year against the same period last yearIncreased
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average spend per customer at 和食さと (a Japanese restaurant chain)More than 5% year on year
    Year on year against the same period last yearIncreased
  • Customer traffic at 和食さと (a Japanese restaurant chain)Below the level in the same period of the previous year
    Year on year against the same period last yearDecreased
  • Customer traffic at にぎり長次郎 (a sushi chain)Monthly year-on-year changes shown
    Year on year against the same period last yearIncreased in promotional months and decreased in August and September
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2030
Consolidated revenue¥115 billion
Ordinary income¥6,000 million
ROEAbove 12.0%
Number of storesMore than 1,100 or 1,180 stores (multiple figures are stated in the materials)
Comparison with actual resultsFY 3/25 actual results, FY 3/26 actual results, the revised forecast for FY 3/27 and the FY 3/30 target are listed side by side for comparison
Financial targets
ROEMore than 12% in FY 3/30 and more than 8% in FY 3/27
ROICMore than 5% maintained; more than 5% in FY 3/27
Market Size / Share
Comparison of the gourmet sushi market share before and after the M&A is shown (company estimate; specific figures Not disclosed in the body text)
Number of stores and locations
Number of Stores at Period-End958 Store
Stores opened during the period23 stores (15 domestic, 8 overseas)
Store Closures During the Period17 Store
Number of employees
Permanent employees1,927 People
Reference date31 March 2026
Annual Dividend
Annual dividend amount¥10.0
Payout ratio
Consolidated payout ratio of at least 20% as a guideline
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales41,694 Million yen (YoY +12.0%)
Operating profit1,088 Million yen (YoY -32.6%)
Ordinary income1,017 Million yen (YoY -36.5%)
Net income2,090 Million yen (YoY +143.0%)
Gross Profit Margin65.5%
Operating profit margin2.6%
Selling, general and administrative expenses26,221 Million yen
Full-year earnings forecastNet Sales 94,300 Million yen / Operating profit 2,600 Million yen / Ordinary income 2,400 Million yen / Profit attributable to owners of the parent 2,500 Million yen
Progress against full-year forecastNet Sales 44.2% / Operating profit 41.8% / Ordinary income 42.4% / Interim net profit attributable to owners of the parent 83.6%
Self-assessment against the planRevenue is running ahead of the second-quarter plan. Operating profit and ordinary profit are expected to fall below the initial forecasts. Net income attributable to owners of the parent is expected to exceed the initial forecast.
Breakdown of Factors Affecting the ChangeFactors Contribution from M&A / Amount Shown in the graph; individual amount Not disclosed in the body text, Factors New stores / Amount Shown in the graph; individual amount Not disclosed in the body text, Factors Existing stores / Amount Shown in the graph; individual amount Not disclosed in the body text, Factors Total year-on-year change in revenue / Amount 4,482 Million yen, Factors Total year-on-year change in operating profit / Amount -525 Million yen
Key KPIsIndicator name Number of group stores / Value 958 Store / Year on year against the same period last year 172 stores added through making 京樽 a subsidiary, Indicator name Number of directly operated store openings, including contracted stores / Value 24 Store / Year on year against the same period last year Not disclosed, Indicator name Progress toward the annual target for company-operated store openings / Value 60 % / Year on year against the same period last year Not disclosed, Indicator name Four-week sales after renovation at 和食さと (a Japanese restaurant chain) / Value YoY +5% to +30% / Year on year against the same period last year Increased, Indicator name Customer traffic after 9 p.m. / Value YoY +20% to +70% / Year on year against the same period last year Increased
Unit price and quantity metricsIndicator name Average spend per customer at 和食さと (a Japanese restaurant chain) / Value More than 5% year on year / Year on year against the same period last year Increased, Indicator name Customer traffic at 和食さと (a Japanese restaurant chain) / Value Below the level in the same period of the previous year / Year on year against the same period last year Decreased, Indicator name Customer traffic at にぎり長次郎 (a sushi chain) / Value Monthly year-on-year changes shown / Year on year against the same period last year Increased in promotional months and decreased in August and September
Number of stores and locationsNumber of Stores at Period-End 958 Store / Stores opened during the period 23 stores (15 domestic, 8 overseas) / Store Closures During the Period 17 Store
Number of employeesPermanent employees 1,927 People / Reference date 31 March 2026 / Change during the period Not disclosed / Hiring plan Not disclosed
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2030 / Consolidated revenue ¥115 billion / Ordinary income ¥6,000 million / ROE Above 12.0% / Number of stores More than 1,100 or 1,180 stores (multiple figures are stated in the materials) / Comparison with actual results FY 3/25 actual results, FY 3/26 actual results, the revised forecast for FY 3/27 and the FY 3/30 target are listed side by side for comparison
Financial targetsROE More than 12% in FY 3/30 and more than 8% in FY 3/27 / ROIC More than 5% maintained; more than 5% in FY 3/27 / Equity ratio Not disclosed
Annual DividendAnnual dividend amount ¥10.0 / Interim Dividend Not disclosed / Year-end dividend Not disclosed
Payout ratioConsolidated payout ratio of at least 20% as a guideline
Market Size / ShareComparison of the gourmet sushi market share before and after the M&A is shown (company estimate; specific figures Not disclosed in the body text)
New initiativesAcquisition of all shares of 京樽 and making it a subsidiary, Considering the maximum use of 京樽's production plants within the group, More renovations at existing 和食さと (a Japanese restaurant chain) stores, extended operating hours and nighttime discounts, Development of new gourmet sushi store formats and openings in Gunma Prefecture, Strengthening the customer experience, employee productivity and shared group infrastructure through DX, Lowering the number of shares eligible for shareholder benefits, expanding the benefits and beginning their use at 京樽 stores
Items this document does not state (8)
Results for the three months of the current quarterSegment resultsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition 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.

Revenue benefited from M&A transactions involving 京樽 (a sushi chain) and にぎり長次郎 (a sushi chain), new store openings and higher average spend per customer. On the earnings front, same-store revenue fell below the initial forecast due to unfavorable weather and other factors, while the increase in selling, general and administrative expenses, including personnel expenses, could not be absorbed by the increase in revenue. Net income increased because a gain on negative goodwill of ¥1,477 million was recognized in connection with making 京樽 a subsidiary.

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Earnings Presentation Materials for the Second Quarter of the Fiscal Year Ending March 2027 | SRS HOLDINGS CO.,LTD. (8163) timely disclosure | Komori