Financial Review
In the current consolidated fiscal year (April 1, 2025 to March 31, 2026), while consumer spending is showing a gradual recovery trend due to improvements in income conditions such as employment and wage increases, the business environment remains uncertain due to factors such as a slowdown in consumer spending caused by continued price increases and rising geopolitical risks.
In this environment, our group has been working on a high-value-added product strategy and improving brand value in order to promote the emotional experience of food both in Japan and overseas. In addition, we are working to increase the satisfaction of store employees, develop and retain human resources, and are working on new management reforms to achieve sustainable business growth, based on "spiritual capital management" that creates a cycle of employee happiness and customer excitement.
As a result, sales revenue reached a record high of 278.715 million yen (up 3.9% year-on-year), with record highs also being set for the Marugame Seimen segment and the domestic other segment. The Marugame Seimen segment and the domestic other segment saw increased revenue due to contributions from new stores and the success of various measures. On the other hand, the overseas business segment saw a decrease in revenue due to the franchising of the Marugame UK business implemented in the previous fiscal year and the impact of closing some unprofitable stores.
Operating profit (Note 1) was 21.46 million yen (up 17.9% year-on-year), a record high similar to sales revenue, and record highs were also set for the Marugame Seimen segment and the overseas business segment. In the Marugame Seimen segment, the increase in sales absorbed the increase in raw material costs, resulting in increased profits. In the domestic other segment, the increase in sales was not enough to absorb the increase in raw material costs and personnel costs, resulting in a slight decrease in profits. In the overseas business segment, although the recovery of the UK business is taking time, profits increased due to the contribution of the strong performance of the Asian business, as well as the promotion of business restructuring through selection and concentration in overseas businesses.
In addition, other operating income amounted to 2.94 million yen, due to the recording of insurance payments related to compensation for store closures at overseas subsidiaries (due to the COVID-19 pandemic), as well as gains from lease terminations due to store closures. On the other hand, impairment losses amounted to 11.408 million yen, mainly due to impairment of unprofitable stores and goodwill in the overseas business segment, and other operating expenses amounted to 2.414 million yen, due to the recording of losses on the sale of shares, etc. As a result, operating profit (Note 2) was 10.578 million yen (up 21.9% year-on-year), and net profit attributable to owners of the parent company was 2.311 million yen (up 23.3% year-on-year), showing an increase in profits.
(Note 1) Business profit: Sales revenue - Cost of sales - Selling, general and administrative expenses
(Note 2) Operating profit: Business profit - impairment loss + other operating income - other operating expenses
Performance by Segment
In the Marugame Seimen segment, we are working to further enhance our brand strength and customer experience value in order to continue to be chosen by our customers. We are implementing a hybrid strategy that combines branding and product promotion to aim for synergistic effects, creating a space that appeals to all five senses and allows customers to feel the story of the noodle factory, and pursuing deliciousness through the noodle artisans (Note 6) who are in charge of all stores, and are implementing various initiatives to increase the number of "Marugame Seimen fans".
Marugame Seimen, a Sanuki udon specialty restaurant that prides itself on handmade and freshly made udon, launched two new dishes on January 14, 2026: "Niku Gasane Tamago Ankake Udon" and "Dashi Tamago Nikuzutsumi Udon," both made with time-consuming "winter handiwork." The new "Dashi Tamago Nikuzutsumi Udon" features a whole rolled omelet, carefully cooked one by one for each order, placed on top of freshly made udon noodles, and its visually striking presentation has garnered much positive feedback.
From January 29th to 31st, we held a limited-time campaign offering free noodle size upgrades for any udon dish, allowing customers to change from a regular size to a large size. From February 25th to 27th, we offered a campaign where customers who purchased one eligible Kamatama Udon received one regular Kamatama Udon for free. From March 11th to 13th, we held a similar campaign for Bukkake Udon, and from March 25th to 27th, we offered a campaign where customers who purchased one Kashiwa Tempura, Chikuwa Tempura, or Inari received one for free. All of these campaigns attracted many customers and were very well received.
Furthermore, starting March 3rd, driven by a strong desire to "bring energy and excitement to even more people," a limited-time collaboration with "Dragon Ball Z" was realized. This campaign featured seven surprising projects and the release of meticulously crafted collaboration products filled with the world of "Dragon Ball Z," receiving a great response from a wide range of customers.
In order to cope with rising raw material costs, labor costs, and utility costs, we have revised the prices of some of our products starting January 14th.
Thanks to these efforts, sales revenue reached a record high of 137.193 million yen (up 7.1% year-on-year). Although raw material costs and other expenses increased, this was absorbed by the increase in sales, and operating profit also increased to a record high of 21.955 million yen (up 5.1% year-on-year).
(Note 6) Noodle craftsman: A specialist who makes the perfect udon. Marugame Seimen's unique human resource development system
The Domestic Other segment includes Kona's Coffee, Ramen Zundoya, Meat no Yamagyu, Banbaya, Tempura Makino, Toridoll, Ton-ya Ton-ichi, Nagata Honjoken, and Baked Koppe Bakery.
Konaz Coffee, which operates under the concept of "the closest Hawaii," opened its Koshigaya store (Saitama) on February 25th and its Kashiwa Toyofuta store (Chiba) on March 20th, and is steadily expanding its stores. In addition, it opened a new brand, "KNOWS COFFEE," at Aeon Mall Tsudanuma South (Chiba) on March 18th. On the other hand, increased raw material costs due to rising food prices and increased labor costs due to staffing needs, as well as the calming down of the acai boom that was strong last year, resulted in increased revenue but decreased profit.
Ramen Zundoya, a specialty tonkotsu ramen restaurant, opened two new stores: the Kasugai Hattacho store (Aichi) on January 30th and the Amagasaki Amadu store (Hyogo) on March 31st, bringing its total number of stores to 110. In addition, they launched a new product, the ultra-rich tonkotsu ramen "Noukou Tonkotsu Evolution," for a limited time starting January 13th, which performed well. However, due to increased raw material costs and higher fees resulting from the rise in delivery orders, they saw increased revenue but decreased profit.
In other business sectors, Tempura Makinoya and Banpaiya performed well, and Toridoru, a specialty restaurant for authentic charcoal-grilled chicken, opened its Nishikobe store (Hyogo) on January 28th, steadily expanding its store network. As a result, sales revenue reached a record high of 39.626 million yen (up 11.9% from the previous period). However, it was not possible to absorb the increases in raw material costs and labor costs, resulting in a decrease in operating profit to 4.152 million yen (down 6.6% from the previous period).
The overseas business segment is comprised of several other brands, including "Tam Jai," which sells spicy rice noodles mainly in Hong Kong, "MARUGAME UDON," which sells Marugame Udon in Asia and North America, and "Fulham Shore," which sells Neapolitan pizza "FRANCO MANCA" and Greek cuisine "THE REAL GREEK" in the UK.
Tam Jai, a spicy noodle restaurant chain, saw a decrease in revenue due to strategic store closures in China and Singapore implemented in the previous fiscal year. However, successful cost control measures, including the reduction of raw material costs and labor expenses, resulted in increased profits. Furthermore, following Australia and Malaysia, the company is expanding into new countries other than Hong Kong, including opening its first store in the Philippines on January 27th.
Despite a decrease in revenue due to the franchising of its UK operations in the previous fiscal year, MARUGAME UDON saw an overall increase in revenue thanks to strong performance at its various locations, primarily in Asia, including Taiwan. Furthermore, the UK operations became profitable, resulting in a significant increase in profits.
Fulham Shore, based in the UK, has experienced a decline in revenue and profits due to the more challenging economic environment surrounding the restaurant industry than anticipated. Although the company has implemented various measures to improve profitability, the recovery in profitability has been slower than initially expected. In light of this situation, as disclosed separately on April 16th and May 1st, the company has commenced a business restructuring aimed at improving the profitability and sustainability of its operations.
Furthermore, we have been proactively reviewing our business portfolio within our overseas business segment. Tam Jai International Co. Limited, which operates Tam Jai, has completed a series of share acquisition procedures toward delisting and, as of August 19, 2025, has been delisted from the Hong Kong Stock Exchange and has become a wholly owned subsidiary of our company. WOK TO WALK FRANCHISE BV, a consolidated subsidiary, also became a wholly owned subsidiary as of August 13, 2025, through the acquisition of additional shares. In addition, we sold our shares in MC GROUP PTE. LTD., which mainly operates MONSTER CURRY in Singapore, as of September 30, 2025.
As a result, while sales revenue decreased to 101.895 million yen (down 2.7% from the previous period), operating profit increased significantly to a record high of 5.285 million yen (up 109.4% from the previous period).
Monthly sales
Consolidated Financial Statements
Earnings Forecast
Consolidated earnings forecast for the fiscal year ending March 2027(April 1, 2026 - March 31, 2027)
million yen (year-on-year change)
sales revenue | 287,000（+3.0％） |
|---|---|
business profit | 22,000（+2.5%） |
Operating income | 17,000（＋60.7%） |
Profit attributable to owners of the parent company | 7,000（+202.9%） |
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