Zensho (7550) Q1 2025 earnings summary

Executive summary

• Net sales rose 24.4% year-over-year to ¥266,583 million for Q1 FY2025, with operating profit up 80.1% to ¥17,247 million and net income up 61.7% to ¥10,796 million, driven by strong recovery in restaurant demand and increased store openings.

• Comprehensive income surged 88.6% year-over-year to ¥24,867 million, reflecting robust business performance and favorable foreign currency translation.

• Store count reached 15,341 at quarter-end, with 316 openings and 84 closures, supporting growth across segments.

Financial highlights

• Gross profit increased to ¥146,843 million from ¥115,206 million year-over-year, with gross margin improvement.

• Basic EPS rose to ¥66.33 from ¥43.97 year-over-year.

• Total assets grew to ¥770,917 million, up ¥22,860 million from the previous fiscal year-end, mainly due to property, plant, and equipment increases.

• Net assets increased to ¥234,324 million, up ¥19,672 million, driven by higher retained earnings and foreign currency translation adjustment.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales ¥1,080,000 million (+11.8%), operating profit ¥62,500 million (+16.4%), net income ¥37,000 million (+20.5%), and EPS ¥231.37.

• Dividend forecast for FY2025 is ¥70 per share, up from ¥50 in FY2024.