VIA Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥8.77B
• Operating Income: ¥-44M
• Net Income: ¥84M
• EPS: ¥-2.05

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

Via Holdings reported FY2026 Q2 consolidated results under JGAAP showing a modest top-line increase alongside a narrowed but still negative operating result. Revenue was 8,767 million yen, up 0.3% YoY, indicating stabilization rather than a robust recovery. Gross profit was 5,920 million yen with a gross margin of 67.5%, consistent with restaurant industry norms where cost of food and beverages is a minority of sales. Operating income remained negative at -44 million yen, but improved markedly YoY (+155.5%), suggesting cost controls and/or pricing actions are gaining traction. Ordinary income was -81 million yen and net income was -93 million yen (EPS -2.05), indicating ongoing burden from non-operating costs. EBITDA was 165 million yen (1.9% margin), showing limited operating cushion relative to fixed costs and interest burden. Interest expense of 44 million yen left EBIT-based interest coverage negative (-1.0x per provided metric), highlighting sensitivity to further shocks. The DuPont bridge implies ROE of -9.97%, driven by a slim negative net margin (-1.06%) and high financial leverage (6.65x), partly offset by relatively high asset turnover (1.413x). Liquidity is tight: the current ratio is 91% with negative working capital of -191 million yen, pointing to near-term financing and cash management pressure. Total liabilities of 5,206 million yen against equity of 933 million yen produce a high debt-to-equity ratio of 5.58x, underscoring balance sheet fragility. Operating cash flow was positive at 103 million yen despite the net loss, with OCF/Net Income of -1.11 indicating earnings quality supported by non-cash items and/or working capital release. Financing cash flow was a net outflow of -495 million yen, consistent with debt repayment, lease reductions, or other financing uses; this likely tightened liquidity. Reported FCF and several balance sheet details (e.g., cash & equivalents, inventories, equity ratio, shares outstanding) were not disclosed in the dataset provided (zeros indicate unreported items), limiting certain ratio diagnostics and per-share analyses. Dividend remains suspended (DPS 0, payout 0%), which is consistent with the loss-making position and deleveraging needs. Overall, the quarter shows incremental operational improvement but continued losses, tight liquidity, and elevated leverage, leaving the recovery dependent on sustained same-store sales gains, margin execution, and access to funding.

Profitability Analysis

ROE of -9.97% decomposes into a net profit margin of -1.06%, asset turnover of 1.413x, and financial leverage of 6.65x. The negative margin is the primary ROE drag, while high leverage amplifies equity sensitivity to small changes in profitability. Gross margin of 67.5% suggests healthy product-level economics consistent with restaurant operations, but SG&A and fixed costs continue to erode operating profitability. EBITDA margin at 1.9% is thin, leaving little buffer for utilities, labor inflation, and rent/lease costs. Operating income of -44 million yen indicates that operating leverage is working against the company at current sales levels; marginal sales gains or cost takeouts could tip EBIT positive, but the cushion is small. Ordinary income at -81 million yen reflects non-operating costs including interest (44 million yen). Effective tax rate is not meaningful in loss conditions (reported 0.0%). Interest coverage on an EBIT basis is negative (-1.0x), highlighting the need to restore EBIT or reduce interest-bearing obligations. On balance, the company is close to breakeven at the operating line, but profitability remains fragile and highly sensitive to small fluctuations in traffic and costs.

Growth Assessment

Revenue grew 0.3% YoY to 8,767 million yen, indicating stabilization rather than robust growth. The limited top-line growth suggests either modest same-store sales improvement, limited pricing, or footprint rationalization offsetting gains. Operating loss improved materially (+155.5% YoY on operating income), implying cost actions are taking effect even with flat revenue. With EBITDA at 165 million yen, incremental sales could drive outsized EBIT improvement via operating leverage, but cost inflation could offset this. Profit quality remains constrained by negative ordinary and net income; sustainable profit recovery requires positive EBIT and adequate coverage of interest. Outlook hinges on demand normalization, continued pricing discipline, mix improvements, and overhead efficiencies. Any store portfolio pruning could support per-store productivity and margins but may cap near-term sales growth. Given the positive OCF despite net loss, earnings may convert better to cash if EBIT can cross breakeven and working capital remains controlled. However, absent disclosure on capex (investing CF unreported), it is difficult to assess growth investment levels or maintenance needs. Near-term growth expectations should be tempered until clear evidence of consistent positive operating income and improved coverage ratios emerges.

Financial Health

Total assets were 6,206 million yen and total liabilities 5,206 million yen, with total equity of 933 million yen. The debt-to-equity ratio stands at 5.58x, indicating high leverage and thin equity buffer. The current ratio is 91% with working capital of -191 million yen, signaling tight liquidity and potential refinancing or supplier payment pressures. Quick ratio is also 91% (due to unreported inventory), but this should be interpreted cautiously given data limitations. Financial leverage of 6.65x in the DuPont framework underscores solvency risk if losses persist. Financing CF of -495 million yen indicates net repayments or outflows, which, in the context of tight liquidity, could constrain flexibility. Cash and equivalents were not disclosed in the provided data (reported as zero), preventing assessment of immediate cash runway. Equity ratio was reported as 0.0% in the dataset but is inconsistent with disclosed equity and assets; we treat the 0.0% as undisclosed rather than zero. Overall solvency is stretched and dependent on restoring operating profitability and maintaining lender support.

Cash Flow Quality

Operating cash flow was 103 million yen versus net income of -93 million yen, producing an OCF/Net Income ratio of -1.11. This suggests that despite accounting losses, cash generation benefitted from non-cash charges (e.g., 209 million yen depreciation and amortization) and/or working capital release. EBITDA of 165 million yen provides some cash earnings, but the small margin leaves limited room for volatility. Investing cash flow was unreported (0), so Free Cash Flow cannot be reliably computed; the provided FCF figure is 0, which we treat as undisclosed rather than an actual zero. Financing cash flow was a sizable outflow of -495 million yen, likely reflecting debt or lease repayments; without cash balance disclosure, we cannot judge how this was funded. Working capital appears to have contributed positively given positive OCF despite losses, but details are not disclosed (inventories and other components unreported). Earnings quality is mixed: positive OCF is a plus, but sustainability requires EBIT profitability and clarity on maintenance capex.

Dividend Sustainability

The company paid no dividend (DPS 0, payout ratio 0%), consistent with its loss-making position and balance sheet priorities. With net income negative and thin EBITDA, distributing cash would not be prudent. Free Cash Flow is unreported in this dataset; therefore, FCF coverage of dividends cannot be assessed beyond noting DPS is zero. Given financing outflows of -495 million yen and tight liquidity metrics (current ratio 91%), preserving cash remains the likely policy stance. Any resumption of dividends would require a sustained return to positive net income and demonstrably positive FCF after maintenance capex, alongside deleveraging progress.

Risk Assessment

Business Risks:

• Weak same-store sales growth amid muted consumer demand
• Input cost inflation (food, beverages) compressing margins
• Labor cost pressures and staffing constraints
• Energy and utility cost volatility impacting store-level EBITDA
• Execution risk in pricing and cost control required to reach EBIT breakeven
• Store portfolio optimization risk (closure costs, lost sales)

Financial Risks:

• High leverage (D/E 5.58x) and thin equity base (equity 933 million yen)
• Tight liquidity (current ratio 91%, negative working capital of -191 million yen)
• Negative EBIT and weak interest coverage (-1.0x on EBIT basis)
• Refinancing and covenant risk if losses persist
• Limited disclosure on cash position and capex complicates runway assessment

Key Concerns:

• Sustained operating losses despite stable revenue
• Sensitivity to small sales or cost swings given low EBITDA margin (1.9%)
• Financing cash outflows (-495 million yen) in the context of tight liquidity
• Data gaps (cash, inventories, capex) limit visibility into short-term resilience

Investment Implications

Key Takeaways:

• Top line stabilized (+0.3% YoY) but profitability remains negative at the operating and net levels
• Gross margin is solid (67.5%), yet overhead and fixed costs are too high relative to revenue
• EBITDA is positive but thin (165 million yen; 1.9% margin), leaving limited shock absorption
• Leverage is high (D/E 5.58x; financial leverage 6.65x) and liquidity is tight (current ratio 91%)
• OCF is positive (103 million yen) despite losses, aided by non-cash items and working capital
• Financing outflows (-495 million yen) and undisclosed cash balance heighten liquidity uncertainty
• Dividend remains suspended; capital allocation focused on stabilization and deleveraging

Metrics to Watch:

• Same-store sales growth and ticket/traffic mix
• EBIT margin progression from -0.5% toward positive territory
• EBITDA margin expansion above 3–5% to improve resilience
• OCF consistency and disclosure of maintenance capex to gauge true FCF
• Interest coverage (EBIT/interest and EBITDA/interest) and covenant headroom
• Working capital trends (payables, receivables, inventories) as disclosed
• Leverage trajectory (D/E and net leverage once cash is disclosed)

Relative Positioning: Within TSE-listed restaurant peers, Via Holdings exhibits weaker profitability (negative EBIT, low EBITDA margin) and higher balance sheet leverage, implying above-average financial risk and greater sensitivity to macro and cost pressures. The operational improvement trend is positive but lags healthier peers that have restored positive operating margins and stronger liquidity.

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