Zensho (7550) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2025 rose 9.9% year-over-year to ¥612.9 billion, driven by strong restaurant and global segment growth, but operating profit declined 1.7% to ¥40.4 billion and net profit fell 6.5% to ¥23.2 billion.

• Profit margin declined to 6.6% as higher input costs, especially for rice and imported beef, and inflation impacted results.

• Cash flows from operating activities increased 21.8% year-over-year to ¥49.8 billion.

• Segment reporting was revised, separating overseas take-out sushi into a new "Global Prepared Food" segment.

Financial highlights

• 2Q FY2025 sales grew 10.8% year-over-year to ¥322.5 billion; operating profit up 3.4% to ¥24.6 billion.

• Gross profit increased to ¥331.8 billion from ¥308.1 billion year-over-year.

• Comprehensive income surged to ¥24.5 billion from ¥9.7 billion year-over-year.

• Basic earnings per share was ¥143.25, down from ¥153.57 a year earlier.

• Free cash flow for 1H FY2025 was ¥6.5 billion.

Outlook and guidance

• Medium-term plan forecasts net sales to reach ¥1,481.0 billion by FY2027, a 29.8% increase from FY2024.

• Full-year forecast for FY ending March 31, 2026: net sales ¥1,223.5 billion (+7.6%), operating profit ¥82.0 billion (+9.1%), net profit ¥42.5 billion (+8.2%), EPS ¥260.94.

• No changes to previously announced forecasts.

• All major segments are expected to contribute to growth, with Global Hamasushi and Global Sukiya leading.