Revenue increased, but the decline in the food-service business's profit margin continued; the next focus is evidence of a recovery in earnings

Consolidated net sales in FY2025-H1 were ¥1,324.642 million, up 9.9% year on year. Operating loss was ¥199.179 million, ordinary loss was ¥214.767 million, and interim net loss attributable to owners of the parent was ¥246.910 million. Although the losses narrowed from the previous corresponding period, the company remained in the red from operating profit through to net income. Accordingly, the next results will hinge not on simple sales growth, but on whether higher sales can absorb fixed costs, personnel expenses and cost of sales.

In the food-service business, segment sales were ¥1,215.391 million, up just 0.8% year on year, while segment profit fell 31.4% to ¥73.246 million. The segment profit margin was approximately 6.0%, down from ¥106.745 million and approximately 8.9% in the corresponding FY2024-Q2 cumulative period. The food-service business had improved to sales of ¥2,438.847 million and segment profit of ¥195.683 million for FY2024 as a whole. The next results will therefore need to establish whether that improvement was temporary or whether the margin can be raised again.

As of FY2025-H1, the food-service business comprised 27 existing stores operated by the company, including 8 franchise stores, and 19 stores operated by 株式会社SSS, including 18 franchise stores. However, sales, profit, same-store sales, customer numbers and average spend have not been disclosed separately for the existing stores and SSS. The next results should show not only the change in segment profit, but also which of the 27 and 19 stores generated profit and how much the shift to franchising reduced fixed costs.