Yossix Holdings Co.,Ltd. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥12.44B
• Operating Income: ¥1.42B
• Net Income: ¥931M
• EPS: ¥101.16

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Yoshix Holdings reported solid topline and profit growth in FY2026 Q2, with revenue of ¥12.441bn (+10.6% YoY) and operating income of ¥1.417bn (+12.3% YoY), indicating healthy operating leverage. Gross profit was ¥7.549bn, implying a robust gross margin of 60.7%, which supports the company’s highly standardized izakaya business model and procurement efficiencies. Operating margin reached approximately 11.4% (¥1.417bn/¥12.441bn), a respectable level for the domestic dine-out sector and consistent with improved scale efficiency. Ordinary income of ¥1.611bn exceeded operating income by roughly ¥0.194bn, suggesting a meaningful tailwind from non-operating gains (e.g., subsidies, investment income, or other non-operating items). Net income was ¥1.035bn (+11.2% YoY), translating to a net margin of 8.32% and EPS of ¥101.16. The inferred effective tax rate is about 29–30% (¥472.6m tax on ~¥1.611bn pre-tax), even though an automated metric showed 0.0%; this reflects data mapping limits rather than an actual zero tax rate. Balance sheet strength is notable: equity of ¥12.438bn against total assets of ¥16.017bn implies an equity ratio near 78%, and liabilities are modest at ¥3.467bn (D/E ~0.28x). Liquidity appears ample with current assets of ¥10.721bn and current liabilities of ¥2.686bn, yielding a current ratio near 4.0x and working capital of ¥8.034bn. However, operating cash flow was negative at -¥220m despite positive earnings, driving an OCF/Net Income ratio of -0.21 and flagging a quality-of-earnings watchpoint tied to working capital timing. Investing cash flow and cash/equivalents line items were not disclosed in the provided XBRL labels, limiting full free cash flow analysis. DuPont shows ROE of ~8.3% driven by an 8.3% net margin, 0.78x asset turnover, and modest leverage (assets/equity ~1.29x), placing returns around sector norms. The company’s capital structure is conservative, suggesting resilience to demand fluctuations and input cost volatility. Dividend data were not disclosed; payout appears undetermined for the period. Overall, fundamentals show healthy revenue momentum, solid margins, conservative leverage, but cash conversion softness this quarter that merits monitoring.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 8.32% (NI ¥1.035bn / Revenue ¥12.441bn)
• asset_turnover: 0.777x (Revenue ¥12.441bn / Assets ¥16.017bn)
• financial_leverage: 1.29x (Assets ¥16.017bn / Equity ¥12.438bn)
• calculated_ROE: ≈8.3% (consistent with reported 8.32%) margin_quality: Gross margin is high at 60.7%, supporting the format’s low food-cost ratio and pricing discipline. Operating margin of ~11.4% reflects effective cost control despite wage and utility pressures. Ordinary income exceeds operating income by ~¥194m, indicating non-operating gains contributed meaningfully; sustainability of these items should be assessed in future periods. operating_leverage: Operating income growth (+12.3% YoY) outpaced revenue growth (+10.6% YoY), signalling positive operating leverage from higher sales density and overhead absorption. SG&A approximates ¥6.13bn (gross profit ¥7.55bn minus operating income ¥1.42bn), or ~49% of sales, implying some room for continued efficiency as scale expands.

Growth Assessment

revenue_sustainability: Topline growth of +10.6% YoY suggests healthy demand and/or net store additions; durability hinges on same-store sales, store rollout cadence, and price/mix amid consumer sentiment. profit_quality: Net margin at 8.32% and operating margin ~11.4% are solid. The gap between ordinary and operating income indicates reliance on non-operating gains this quarter; core profitability remains sound but normalization of non-operating items could trim bottom line. outlook: Assuming stable consumer traffic, controlled food cost inflation, and productivity initiatives, mid-single to low-double-digit revenue growth is plausible. Near-term earnings trajectory depends on maintaining gross margin and holding SG&A growth below sales growth, while cash conversion improves as working capital normalizes.

Financial Health

liquidity: Current assets ¥10.721bn vs current liabilities ¥2.686bn implies a current ratio ~399%. Quick ratio appears similar due to undisclosed inventory; liquidity buffer is ample. Working capital stands at ¥8.034bn. solvency: Total liabilities ¥3.467bn vs equity ¥12.438bn yields D/E ~0.28x and an equity ratio near 78%, indicating low balance sheet risk. capital_structure: Moderate liabilities and strong equity base reduce refinancing and interest-rate sensitivity. Interest expense was undisclosed, but ordinary income strength suggests limited interest burden.

Cash Flow Quality

earnings_quality: OCF/Net Income at -0.21 indicates weak cash conversion this quarter despite positive earnings. Likely driven by working capital outflows (e.g., receivables, prepayments, or payables timing). FCF_analysis: Investing cash flow and capex were not disclosed, so true FCF cannot be determined. EBITDA of ¥1.613bn provides internal funding capacity, but negative OCF and unknown capex temper visibility. working_capital: Current assets expanded relative to current liabilities, consistent with OCF drag. Monitoring days sales outstanding, payables days, and other current asset movements will clarify the transient vs structural nature of the outflow.

Dividend Sustainability

payout_ratio_assessment: Payout ratio and DPS were not disclosed in the provided data. With net income at ¥1.035bn and a strong equity base, capacity exists, but the quarter’s negative OCF argues for prudence until cash conversion improves. FCF_coverage: Not assessable due to undisclosed investing cash flows and capex; reported FCF coverage metric appears placeholder. policy_outlook: Absent disclosed policy or guidance, expect a conservative stance aligned with balance sheet strength and reinvestment needs (store openings/renovations). Disclosure updates are needed for a firmer view.

Risk Assessment

Business Risks:

• Same-store sales volatility amid shifts in consumer sentiment and real income
• Food and beverage input cost inflation (seafood, meat, grain-based items)
• Labor availability and wage inflation in Japan’s F&B sector
• Utility cost volatility impacting store-level margins
• Execution risk in new store openings and format rollouts
• Competitive intensity in izakaya/casual dining, including discounting
• Regulatory changes affecting alcohol service or operating hours
• Event risk (health scares, natural disasters) impacting footfall

Financial Risks:

• Weak cash conversion this quarter (OCF negative) despite positive earnings
• Potential capex/renovation needs that could pressure near-term cash flows
• Lease-related obligations (operating leases) not fully visible in provided data
• Dependence on non-operating gains to lift ordinary income above operating income
• Tax rate variability vs normalized levels

Key Concerns:

• Negative OCF (¥-220m) and OCF/NI of -0.21 indicating working capital drag
• Non-operating income contribution (~¥194m) to ordinary income sustainability
• Data mapping differences in cost lines (e.g., COGS vs gross profit) reduce comparability

Investment Implications

Key Takeaways:

• Revenue +10.6% YoY with operating income +12.3% YoY indicates positive operating leverage
• Robust gross margin (60.7%) and operating margin (~11.4%) underscore cost discipline
• Ordinary income boosted by non-operating gains; monitor sustainability
• Balance sheet conservative (equity ratio ~78%, D/E ~0.28x), supporting resilience
• Cash conversion soft this quarter (OCF negative), a key watch item

Metrics to Watch:

• Same-store sales growth and average ticket/traffic
• Operating margin and SG&A-to-sales ratio
• OCF/Net Income and working capital days
• Capex and store openings/closures
• Share of non-operating income in ordinary income
• Effective tax rate normalization
• Asset turnover and ROE progression

Relative Positioning: Within Japan’s casual dining/izakaya peers, Yoshix demonstrates above-average balance sheet strength and competitive operating margins, with ROE around sector average; near-term differentiation hinges on sustaining SSS growth while normalizing cash conversion.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis