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Earnings presentation8179ROYAL HOLDINGS Co., Ltd.Retail

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026

For the first half of the fiscal year ending December 2026, revenue, operating profit, ordinary profit and interim net profit all exceeded the year-earlier period, supported by sales growth at existing stores, new store openings and firm hotel demand. Revenue and ordinary profit reached record highs for a first half, with ordinary profit exceeding the initial interim forecast, while revenue fell short of the forecast.

Worth reading
76Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
3469
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥82,275 million+4.4%
Operating profit¥3,315 million+3.8%
Ordinary income¥3,526 million+5.0%
Net income¥2,201 million +10.8%interim net income attributable to owners of the parent
Operating profit margin
Rate4
Year-on-year change (points)-0
Results for the three months of the current quarterOrdinary profit exceeded the year-earlier quarter during the second-quarter period of 2026 (April to June), reaching a record high for a second-quarter period. The occupancy rate at directly operated hotels was 88.3%, and ADR was ¥13,793.
Full-year earnings forecast
Net Sales
¥174,800 million
Operating profit
¥8,950 million
Ordinary income
¥8,800 million
Profit attributable to owners of the parent
¥5,700 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 Sales47.1%
Operating profit37.0%
Ordinary income40.1%
Profit attributable to owners of the parent38.6%
By segmentFood Service Business: revenue 47.3%, ordinary profit 30.6%; Contract Business: 46.7%, 45.6%; Hotel Business: 47.4%, 44.4%; Food Business: 45.5%, 129.5%; Other Businesses: 42.5%, 41.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell short of the initial forecast, while ordinary profit exceeded the initial interim forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Impact of Higher Purchase Prices
Raw Materials+¥1.0 billion (first-half results)
Electricity and gas-¥0.1 billion (first-half results)
Total Impact+¥0.9 billion (first-half results)
Full-Year Outlook
Raw Materials+¥2.2 billion
Electricity and gas+¥200 million
Total Impact+¥2.4 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The full-year increase in raw material purchase prices is expected to be ¥2.2 billion, while electricity and gas costs are expected to increase by ¥0.2 billion. The increase in purchase prices is expected to ease toward the end of the fiscal year following a review of beef procurement methods and the switch to newly harvested rice.
New initiatives
  • Opening Onidon, a new Tenya format
  • Opening and expanding JB’s TOKYO
  • Promoting dominant openings of multiple brands in Vietnam
  • Scheduled opening of Richmond Hotel Hachinohe Square under an operating management contract
  • Developing lodging and leisure-oriented hotels through collaboration with Sojitz Corporation and ACTUS Corporation
  • Deciding to operate the hotel provisionally named Avani Kyoto
Key KPIsA metric the company considers important as a management benchmark.
  • Occupancy rate at directly operated hotels88.3 %
    Year on year against the same period last year+2.6 percentage points
  • ADR at directly operated hotels¥13,793
    Year on year against the same period last year+¥652
  • Inbound guest ratio28.9 %
  • Royal Host same-store sales103.9 % year on year
  • Tenya same-store sales100.6 % year on year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of visitors99.5 % year on year
    BrandRoyal Host
  • Average spend per customer106.7 % year on year
    BrandRoyal Host
  • Number of visitors94.6 % year on year
    BrandTenya
  • Average spend per customer106.4 % year on year
    BrandTenya
Segment results
Food-Service Business
Net Sales34,209
Revenue unit¥ million
Year-on-year change in revenue+5.6%
Ordinary income1,224
Profit unit¥ million
Year-on-year change in ordinary profit-15.8%
Contract Operations
Net Sales24,732
Revenue unit¥ million
Year-on-year change in revenue-2.6%
Ordinary income1,323
Profit unit¥ million
Year-on-year change in ordinary profit+23.3%
Hotel Business
Net Sales20,770
Revenue unit¥ million
Year-on-year change in revenue+7.3%
Ordinary income3,152
Profit unit¥ million
Year-on-year change in ordinary profit+16.6%
Food Business
Net Sales7,010
Revenue unit¥ million
Year-on-year change in revenue+15.6%
Ordinary income259
Profit unit¥ million
Year-on-year change in ordinary profit+21.3%
Other Businesses
Net Sales170
Revenue unit¥ million
Year-on-year change in revenue+8.7%
Ordinary income371
Profit unit¥ million
Year-on-year change in ordinary profit-20.2%
Medium-term management plan targets
Target fiscal yearFY2027
Net Sales¥187.5 billion
Ordinary income¥10 billion
ROE12%
EPS¥135
Equity ratio40%
Financial targets
ROE12% in fiscal 2027 (12% actual in fiscal 2024)
Equity ratio40% in fiscal 2027 (39% actual in fiscal 2024)
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The full-year impact of higher purchase prices for raw materials, electricity and gas is expected to total ¥2.4 billion.
Number of stores and locations
At the end of the second quarter of 2026, the number of stores was 471 in the Food Service Business, 158 in the Contract Business and 68 in the Hotel Business, for a group total of 681. During the first half, 16 Food Service Business stores, 4 Contract Business stores and 1 Hotel Business store opened, while 14 Food Service Business stores, 3 Contract Business stores and no Hotel Business stores closed.
Capital expenditures
¥42.2 billion cumulative results through the second quarter of 2026
Payout ratio
Targeting a DOE of 3.5% and a consolidated dividend payout ratio of 30%
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending December 2026
Net Sales¥82,275 million (YoY +4.4%)
Operating profit¥3,315 million (YoY +3.8%)
Ordinary income¥3,526 million (YoY +5.0%)
Net income¥2,201 million (interim net income attributable to owners of the parent) (YoY +10.8%)
Operating profit marginRate 4 / Year-on-year change (points) -0
Results for the three months of the current quarterOrdinary profit exceeded the year-earlier quarter during the second-quarter period of 2026 (April to June), reaching a record high for a second-quarter period. The occupancy rate at directly operated hotels was 88.3%, and ADR was ¥13,793.
Full-year earnings forecastNet Sales ¥174,800 million / Operating profit ¥8,950 million / Ordinary income ¥8,800 million / Profit attributable to owners of the parent ¥5,700 million
Progress against full-year forecastNet Sales 47.1% / Operating profit 37.0% / Ordinary income 40.1% / Profit attributable to owners of the parent 38.6% / By segment Food Service Business: revenue 47.3%, ordinary profit 30.6%; Contract Business: 46.7%, 45.6%; Hotel Business: 47.4%, 44.4%; Food Business: 45.5%, 129.5%; Other Businesses: 42.5%, 41.2%
Self-assessment against the planRevenue fell short of the initial forecast, while ordinary profit exceeded the initial interim forecast.
Segment resultsFood-Service Business Net Sales 34,209 / Revenue unit ¥ million / Year-on-year change in revenue +5.6% / Ordinary income 1,224 / Profit unit ¥ million / Year-on-year change in ordinary profit -15.8% / Contract Operations Net Sales 24,732 / Revenue unit ¥ million / Year-on-year change in revenue -2.6% / Ordinary income 1,323 / Profit unit ¥ million / Year-on-year change in ordinary profit +23.3% / Hotel Business Net Sales 20,770 / Revenue unit ¥ million / Year-on-year change in revenue +7.3% / Ordinary income 3,152 / Profit unit ¥ million / Year-on-year change in ordinary profit +16.6% / Food Business Net Sales 7,010 / Revenue unit ¥ million / Year-on-year change in revenue +15.6% / Ordinary income 259 / Profit unit ¥ million / Year-on-year change in ordinary profit +21.3% / Other Businesses Net Sales 170 / Revenue unit ¥ million / Year-on-year change in revenue +8.7% / Ordinary income 371 / Profit unit ¥ million / Year-on-year change in ordinary profit -20.2%
Breakdown of Factors Affecting the ChangeImpact of Higher Purchase Prices Raw Materials +¥1.0 billion (first-half results) / Electricity and gas -¥0.1 billion (first-half results) / Total Impact +¥0.9 billion (first-half results) / Full-Year Outlook Raw Materials +¥2.2 billion / Electricity and gas +¥200 million / Total Impact +¥2.4 billion
Key KPIsIndicator name Occupancy rate at directly operated hotels / Value 88.3 % / Year on year against the same period last year +2.6 percentage points, Indicator name ADR at directly operated hotels / Value ¥13,793 / Year on year against the same period last year +¥652, Indicator name Inbound guest ratio / Value 28.9 % / Year on year against the same period last year Not disclosed, Indicator name Royal Host same-store sales / Value 103.9 % year on year / Year on year against the same period last year Not disclosed, Indicator name Tenya same-store sales / Value 100.6 % year on year / Year on year against the same period last year Not disclosed
Unit price and quantity metricsBrand Royal Host / Indicator Number of visitors / Value 99.5 % year on year, Brand Royal Host / Indicator Average spend per customer / Value 106.7 % year on year, Brand Tenya / Indicator Number of visitors / Value 94.6 % year on year, Brand Tenya / Indicator Average spend per customer / Value 106.4 % year on year
Number of stores and locationsAt the end of the second quarter of 2026, the number of stores was 471 in the Food Service Business, 158 in the Contract Business and 68 in the Hotel Business, for a group total of 681. During the first half, 16 Food Service Business stores, 4 Contract Business stores and 1 Hotel Business store opened, while 14 Food Service Business stores, 3 Contract Business stores and no Hotel Business stores closed.
Assumptions Underlying the Business OutlookThe full-year increase in raw material purchase prices is expected to be ¥2.2 billion, while electricity and gas costs are expected to increase by ¥0.2 billion. The increase in purchase prices is expected to ease toward the end of the fiscal year following a review of beef procurement methods and the switch to newly harvested rice.
Risk amount incorporated into the outlookThe full-year impact of higher purchase prices for raw materials, electricity and gas is expected to total ¥2.4 billion.
Medium-term management plan targetsTarget fiscal year FY2027 / Net Sales ¥187.5 billion / Ordinary income ¥10 billion / ROE 12% / EPS ¥135 / Equity ratio 40%
Financial targetsROE 12% in fiscal 2027 (12% actual in fiscal 2024) / Equity ratio 40% in fiscal 2027 (39% actual in fiscal 2024)
Payout ratioTargeting a DOE of 3.5% and a consolidated dividend payout ratio of 30%
Capital expenditures¥42.2 billion (cumulative results through the second quarter of 2026)
New initiativesOpening Onidon, a new Tenya format, Opening and expanding JB’s TOKYO, Promoting dominant openings of multiple brands in Vietnam, Scheduled opening of Richmond Hotel Hachinohe Square under an operating management contract, Developing lodging and leisure-oriented hotels through collaboration with Sojitz Corporation and ACTUS Corporation, Deciding to operate the hotel provisionally named Avani Kyoto
Items this document does not state (8)
Gross Profit MarginSelling, general and administrative expensesNumber of employeesAnnual DividendAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey 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 and profit growth were driven by growth at existing stores following sales price revisions, contributions from new store openings, and firm sales at existing stores, mainly in the hotel business. The materials also cite higher raw material costs, initial expenses associated with new store openings, adverse weather, a decline in Chinese tourists, and increases in selling, general and administrative expenses and other costs.

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Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 | ROYAL HOLDINGS Co., Ltd. (8179) timely disclosure | Komori