First Quarter Financial Results for the Fiscal Year Ending March 2027 (Japanese GAAP, Consolidated)

Overview of performance

Consolidated net sales for the first quarter of this fiscal year amounted to 19,028 million yen, up 6.5% YoY, indicating solid growth. On the other hand, operating income dropped sharply to 267 million yen (YoY △53.7%), ordinary income was 229 million yen (△58.9%), and net income attributable to owners of the parent was 147 million yen (△46.6%), reflecting substantial profit pressure. Increases in raw material and labor costs are cited as drivers of cost inflation, with selective store openings and M&A effects evident, while existing store traffic remained weak. The full-year outlook maintains the previous guidance. There is no change to the dividend forecast. Expansion of stores in Kyushu and new openings are expected to continue, but profit levels for the year are anticipated to be tight.

Outlook and capital movements

The full-year earnings outlook remains unchanged: net sales 83,000 million yen, operating income 3,200 million yen, ordinary income 3,000 million yen, and net income attributable to owners of the parent of 1,800 million yen. At year-end, issued shares total 41,470,184, treasury stock 115,558, and the average number of shares 41,354,501. Additionally, post-disclosure information regarding Kyotaru's stock acquisition has been provided, and its impact on consolidated earnings is being reviewed, with any necessary adjustments to earnings guidance to be disclosed. Cash flow reflects reductions in cash and deposits and payables, with the financial position showing a decrease in total assets but a stable equity ratio.