Financial Review
During the current consolidated fiscal year (April 1, 2024 to March 31, 2025), the business environment was somewhat uncertain, with rising wages across industries and regions expected to stimulate consumer confidence, but concerns about the impact of rising labor costs on corporate performance. In this environment, the Group further strengthened its appeal for moving food experiences both domestically and overseas. In addition, in Japan, the Group worked to increase the satisfaction of employees working in its stores and create mechanisms to ensure sufficient human resources.
As a result, sales revenue reached a record high of 268,228 million yen (up 15.6% from the previous fiscal year), with all segments, including Marugame Seimen, a specialty restaurant chain for authentic Sanuki udon noodles, Domestic and Others, and Overseas Business, all recording record highs.
Operating profit (Note 1) increased significantly to 18,205 million yen (up 27.4% year on year), also a record high. The Marugame Seimen segment achieved a record high, absorbing increases in raw material costs, labor costs, and utility costs with increased sales. Meanwhile, the Domestic and Others segment remained roughly flat due to increased costs associated with new store openings. Profits in the overseas business decreased due in part to the worsening market conditions in some regions.
In addition, impairment losses amounted to 8,066 million yen due to unprofitable stores and goodwill impairment in the overseas business segment caused by the worsening market conditions, and other operating expenses amounted to 2,982 million million yen due to one-off expenses of 1,185 million yen related to the outsourcing contract for Marugame Seimen recorded in the second quarter. As a result, operating profit (Note 2) decreased to 8,674 million yen (down 23.8% year on year), and profit attributable to owners of the parent decreased to 1,874 million yen (down 65.7% year on year).
(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 implementing a marketing strategy that combines a brand strategy that creates a perception that customers will continue to choose us with a product strategy that creates impulse, and simultaneously spikes up brand value, customer experience (CX), and employee experience (EX). In addition, by deploying noodle craftsmen (Note 6) to all stores and filling the staff, we have been able to launch many new initiatives in rapid succession.
As seasonal fair items, from January 15, 2025, we simultaneously sold "Duck and Onion Udon" and "Oyster and Egg Thick Udon," which are popular winter seasonal items of Marugame Seimen and compete for first and second place. "Duck and Onion Udon" sold a total of about 1.57 million servings, and "Oyster and Egg Thick Udon" was such a big hit that it was sold out early. In addition, we started selling the "Marugame Children's Mochimochi Set" from January 15, which is a set of chewy "freshly made udon", "Marugame Udon Nuts" and "Juice" that was developed with the desire to make udon even more enjoyable for families who visit Marugame Seimen, especially children. It was so well received that the cumulative number of sales exceeded 1.2 million servings by March 31. Starting on March 4th, Marugame Seimen will be selling its delicious spring staple, the "Mountain of Clam Udon," which is making its 10th appearance this year, as well as a completely new product, the "Pork Tempura Bukkake Udon Overflowing with Sweet and Spicy Ginger Sauce," a hearty, delicious dish with three large pieces of pork tempura that overflow from the bowl. These have become huge hits, with cumulative sales of approximately 650,000 and 740,000 servings, respectively, by March 31st.
In addition, as a new category of product, we have started selling "Marugame Udon Nuts," a udon-based product, at Marugame Seimen restaurants nationwide from June 25, 2024. It has been very well received by customers, and cumulative sales as of March 31, 2025 have exceeded 13.7 million meals.
On the other hand, in order to address increases in raw material costs, labor costs and utility costs, we implemented price revisions for some products on January 15, 2025.
As a result of these efforts, sales revenue reached a record high of 128,142 million yen (up 11.6% year on year), and business profit also increased significantly to a record high of 20,896 million yen (up 13.9% year on year).
(Note 6) Noodle craftsman: A specialist who makes the perfect udon. Marugame Seimen's unique human resource development system
The Domestic Others segment includes Kona's Coffee, Zundoya, Meat Yamagyu, Banbaiya, Tempura Makino, Tori Doll, Ton-ya Ton-ichi, Nagata Honjoken, and Baked Koppe Bakery.
Kona's Coffee, which operates under the concept of "the closest Hawaii," has seen a significant increase in customer numbers thanks to seasonal limited-time fair items and events held inside and outside the store, as well as the strengthening of online and offline information dissemination and the use of SNS. The Kashiihama store (Fukuoka), which will open in Fukuoka City on March 20, 2025, is poised to become one of the top stores in Japan in terms of sales. In addition, the number of customers and average customer spending at existing stores have both increased, resulting in increased revenue and profits.
Tonkotsu ramen chain Zundoya opened a new store in Soka VARIE (Saitama), Kawasaki Ginza (Kanagawa), and Haneda Airport Terminal 1 (Tokyo) in the fourth quarter, bringing the total number of stores to 104. This resulted in increased revenue, but profits decreased due to increased costs associated with opening new stores and preparations for a central kitchen in preparation for accelerating new store openings in the future.
As a result of progress in opening and renovating stores in other formats, sales revenue reached a record high of 35,412 million yen (up 24.4% year on year). However, due to increased costs associated with new store openings, operating profit remained roughly flat at 4,447 million yen (down 0.1% year on year).
In the Overseas Business segment, we announced a downward revision of our earnings forecast in the interim period due to the impact of the worsening market conditions in some of the regions in which we operate. In order to improve sales revenue and profitability even in the poor market conditions, we established a department to promote reform of overseas restaurant formats within our Overseas Business Headquarters on October 1, 2024, and have been promoting the strengthening of the creation of thriving store models by sending personnel with a high level of knowledge of domestic business overseas.
In addition to efforts to improve the quality of products and services and productivity, we have seen a certain degree of effect on sales and profitability since the third quarter of this fiscal year due to the development of attractive products and the introduction of lively store designs. We have also reviewed the business portfolio within the overseas business segment, and on March 31, 2025, we sold the Marugame UK business, which had been performing poorly, to a local restaurant company and franchised it.
Revenues increased significantly to a record high of 104,674 million yen (up 18.1% year on year) for the fiscal year under review, due in part to the full-year contribution of Fulham Shore, which was consolidated from the second quarter of the previous fiscal year. However, business profits were unable to make up for the delays seen up until the interim period under review, declining to million yen (down 7.3% year on year).
Monthly sales
Consolidated Financial Statements
Earnings Forecast
Consolidated earnings forecast for the fiscal year ending March 2026(April 1, 2025 - March 31, 2026)
million yen (year-on-year change)
sales revenue | 282,000（+5.1％） |
|---|---|
business profit | 19,600（+7.7%） |
Operating income | 1４,600（＋68.3%） |
Profit attributable to owners of the parent company | 5,500（+193.5%） |
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