| Metric | Current Period | Prior-year Period | YoY |
|---|---|---|---|
| Revenue | ¥549.7B | ¥543.6B | +1.1% |
| Operating Income | ¥30.5B | ¥39.3B | -22.4% |
| Ordinary Income | ¥34.8B | ¥43.0B | -19.0% |
| Net Income | ¥23.6B | ¥25.3B | -6.8% |
| ROE | 4.8% | 5.1% | - |
For FY2026 Q3 year-to-date, Revenue was ¥549.7B (YoY +¥6.1B +1.1%), essentially flat, while Operating Income ¥30.5B (YoY -¥8.8B -22.4%), Ordinary Income ¥34.8B (YoY -¥8.2B -19.0%), and Net Income ¥23.6B (YoY -¥1.7B -6.8%) all declined. The sharp decrease in Operating Income was mainly due to a slight decline in gross margin to 22.9% from the prior year and an increase in SG&A to ¥95.6B, which drove the operating margin down to 5.5% (down -1.7pt from 7.2% in the prior year). Ordinary Income was supported by ¥5.0B in non-operating income (including dividend income), narrowing the decline. The decrease in Net Income was less pronounced than that of Operating Income, with EPS at ¥258.13. The full-year outlook remains for declines: Revenue ¥730.0B (YoY +0.9%), Operating Income ¥35.0B (YoY -31.3%), and Net Income ¥31.0B (YoY -26.3%).
[Profitability] ROE 4.8% (down from 5.8% in the prior year), operating margin 5.5% (down -1.7pt from 7.2% in the prior year), and net margin 4.3% (down from 4.7% in the prior year) indicate overall deterioration in profitability. The 22.9% gross margin is below the general food industry level (25–40%), suggesting a tightening cost structure. SG&A was ¥95.6B, with salaries and allowances at ¥21.3B and rent at ¥6.6B, indicating fixed costs are a persistent cost pressure. [Cash Quality] Cash and cash equivalents were ¥12.5B against current liabilities of ¥127.3B, resulting in a low short-term debt coverage of 0.1x; however, total current assets were ¥450.5B, with a current ratio of 353.8% and a quick ratio of 318.6%, indicating ample short-term payment capacity. Accounts receivable of ¥112.6B is a major component of current assets, making collection efficiency key to liquidity. [Investment Efficiency] Total asset turnover was 0.89x (annualized 1.19x), well above the industry median of 0.61x, indicating solid asset efficiency. Inventory days cannot be calculated from the disclosed data, but the composition of current assets suggests receivables management is crucial. [Financial Soundness] Equity ratio was 78.7% (78.5% in the prior year), current ratio 353.8%, and financial leverage 1.27x, indicating a highly conservative capital structure. Interest-bearing debt was ¥4.0B, with a debt-to-equity ratio of 0.27x, reflecting low reliance on borrowings. However, with a short-term debt ratio of 100%, the liability structure is weighted toward short-term borrowings, necessitating confirmation of refinancing plans.
Cash and deposits were ¥12.5B, a slight decrease from ¥12.9B in the prior year, and the cash ratio was a low 2.0% relative to total assets of ¥620.1B. Current assets were ¥450.5B, down -¥3.8B from ¥454.3B in the prior year; within this, accounts receivable increased slightly to ¥112.6B (up +¥1.1B from ¥111.5B), while inventories of merchandise and finished goods showed no major changes based on disclosed amounts. Current liabilities were ¥127.3B, down -¥4.7B from ¥132.0B in the prior year, suggesting a possible decline in trade payables. Cash coverage of short-term liabilities was 0.1x, but coverage by total current assets was 3.5x, indicating secured short-term liquidity. In working capital efficiency, accounts receivable increased slightly while cash decreased slightly; with operating profit not growing, working capital appears to be absorbing funds. Interest paid was ¥0.03B against interest-bearing debt of ¥4.0B, indicating minimal financial cost burden. An interim dividend of ¥140 has been paid; against the full-year dividend forecast of ¥140, the payout source implies a calculated payout ratio of 111.8% versus Net Income of ¥23.6B, suggesting dividends funded from retained earnings or accumulated funds.
Against Ordinary Income of ¥34.8B, Operating Income was ¥30.5B, resulting in net non-operating income of ¥4.3B. This comprises ¥5.0B in non-operating income less ¥0.7B in non-operating expenses, with dividend income and other financial income as major components. Non-operating income accounts for 0.9% of Revenue, presumably derived from recurring financial assets. Regarding the quality of Operating Income, SG&A was ¥95.6B against gross profit of ¥126.0B, for an SG&A ratio of 17.4%; SG&A increased from the prior year, worsening operating leverage. Meanwhile, the transition from Ordinary Income to profit before income taxes shows extraordinary gains/losses of -¥0.4B, a small amount, indicating limited impact from one-off items. While Net Income was ¥23.6B, the cash flow statement is not disclosed, making comparison with Operating Cash Flow infeasible; however, slight decreases in current assets and current liabilities suggest limited cash generation from operating activities. The slight increase in receivables and slight decrease in cash suggest deterioration in working capital efficiency, indicating room to improve the cash conversion quality of earnings.
[Position within industry] (Reference information; Our research) Profitability: Operating margin of 5.5% exceeds the industry median of 4.9% (FY2025 Q3, n=13 companies) by 0.6pt, placing the company in the middle to upper tier within the industry. Net margin of 4.3% exceeds the industry median of 3.4% by 0.9pt. ROE of 4.8% is 0.4pt below the industry median of 5.2%, positioning the company in the middle to slightly lower tier. The decline in ROE from the prior year (5.8%→4.8%) is mainly due to deterioration in operating margin, and the fall below the industry median indicates a relative weakening of earnings power. Efficiency: Total asset turnover of 0.89x (annualized 1.19x) is well above the industry median of 0.61x, placing the company in the upper tier for asset efficiency. Sales growth of +1.1% is -2.7pt below the industry median of +3.8%, placing the company in the lower tier for growth. Soundness: The equity ratio of 78.7% exceeds the industry median of 48.0% by +30.7pt, placing the company at the top tier for capital conservatism. The current ratio of 353.8% is well above the industry median of 176%, indicating extremely high short-term liquidity. Financial leverage of 1.27x is below the industry median of 2.01x, highlighting low borrowing dependence. Industry: Food & Beverage (13 companies), Comparison: FY2025 Q3, Source: Our compilation
This report is an earnings analysis document automatically generated by AI based on XBRL financial statement data. It is not a solicitation to invest in any specific security. The industry benchmark is reference information compiled by our company based on publicly available financial results data. Investment decisions are your own responsibility; consult a professional as needed before investing.