Financial Review
During the current interim consolidated fiscal period (April 1 to September 30, 2025), the Japanese economy is on a gradual recovery trend due to an improvement in the income environment caused by factors such as rising employment conditions and wages. However, the business environment remains uncertain due to factors such as a slowdown in consumer confidence caused by continued price increases and increasing geopolitical risks.
In this environment, the Group has worked to promote the emotional experience of food both domestically and internationally by implementing a high-value-added product strategy and improving brand value. Furthermore, the Group has worked to increase the satisfaction of store employees, develop and retain talent, and has launched new management reforms to achieve sustainable business growth, emphasizing "spiritual capital management" that creates a cycle of employee happiness and customer excitement.
As a result, sales revenue reached million yen (up 6.0% year on year), the highest ever for an interim period, and both the Marugame Seimen segment and the Domestic Others segment also achieved record highs. The Marugame Seimen segment and the Domestic Others segment saw increased revenue due to favorable performance at existing stores and contributions from new stores. Meanwhile, the Overseas Business segment saw a decrease in revenue due to factors including the franchising of the Marugame UK business implemented in the previous fiscal year and the closure of some unprofitable stores.
Operating profit (Note 1) reached 11,774 million yen (up 22.8% year on year), the same record high for an interim period as revenue, and both the Marugame Seimen segment and the Overseas Business segment also achieved record highs. The Marugame Seimen segment and the Domestic Other segment increased profits by absorbing increases in raw material costs and labor costs. The Overseas Business segment increased profits due to the contribution of the strong Asian business and improved profits following the franchising of the Marugame UK business, despite the UK economy showing a weak recovery and the restaurant market still taking time to recover.
In addition, other operating income was 2,198 million yen due to the recording of insurance payments related to store closure compensation (due to the COVID-19 pandemic) at overseas subsidiaries, as well as gains on lease cancellations associated with store closures. Meanwhile, other operating expenses were 1,413 million yen due to the recording of a loss on sale of shares of 852 million yen associated with the sale of shares in MC GROUP PTE. LTD. As a result, operating profit (Note 2) reached a record high for an interim period at 12,392 million yen (up 64.0% year on year), and interim profit attributable to owners of the parent also increased to 5,968 million yen (up 113.3% year on year), both of which also reached a record high, just like operating profit.
(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 improve our brand power and customer experience value in order to continue to be chosen by customers. We are implementing various initiatives to increase the number of "Marugame fans" by combining branding and product promotions, deploying hybrid tactics that aim for synergistic effects, creating spaces that appeal to the five senses and allow customers to experience the story of our noodle factory, and pursuing deliciousness through the noodle craftsmen (Note 6) employed at all stores.
As for seasonal fair products, in addition to the summer staple "Onioroshi Bukkake Udon," three new varieties of "Cold Umami Shio Udon" were released on July 8. The combination of freshly made udon noodles that are easy to swallow and an unprecedented "Cold Shio Dashi" broth that is full of the flavor of kelp and scallops, with the addition of black pepper to finish off the flavor, has made the series a huge hit, with approximately 4.25 million servings sold, making it a bowl of noodles that you'll want to eat in the hot summer.
Starting on September 9th, we launched two types of cold udon noodles, just in time for the start of autumn, when the heat is still not over. "Tasty Spicy Pork Tsuke Udon" has a deliciously spicy dipping sauce made with chili oil, and customers can choose the amount of noodles up to three at the same price, so it has been well received by a wide range of customers. "Citrus-scented Sticky Chicken Bukkake Udon" is a dish that perfectly pairs the refreshing acidity of citrus with grated yam containing chopped okra. Both products are perfect for these still-hot days, and have received a great response, with a total of approximately 1.7 million servings of the two products sold by the end of September.
Furthermore, for "Marugame Udonuts," which has been on sale since last year, the first intra-group collaboration was launched in July with the release of "Acai Berry Flavor," supervised by "Kona's Coffee," which is based on the concept of "the closest Hawaii." "Marugame Udonuts," which are sold with a lineup that changes with each season, have been well-received across a wide range of age groups, with one in three customers repeating purchases, and have sold over 20 million servings (Note 7) in the one year and three months since their release, making them a staple product of Marugame Seimen.
As a result of these efforts, sales revenue reached a record high for an interim period of 71,366 million yen (up 9.6% year on year). Although raw material costs and labor costs increased, these were absorbed by increased sales, and core profit also increased significantly to a record high for an interim period of 12,695 million yen (up 11.4% year on year). The core profit margin also reached a record high for an interim period of 17.8%.
(Note 6) Noodle craftsman: A specialist who makes the perfect udon. Marugame Seimen's unique human resource development system
(Note 7) Cumulative sales volume at Marugame Seimen stores selling "Marugame Udonuts" from June 25, 2024 to September 15, 2025
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.
Kona's Coffee, which operates under the concept of "the closest Hawaii," is accelerating its store openings, opening its Kamagaya store in Kamagaya City, Chiba Prefecture on July 10th, and its first store in Fukushima Prefecture, the Koriyama store, on July 31st. In addition, as part of a collaboration project with Marugame Udonuts, the company launched a new malasada (acai) on July 17th, and has decided to offer malasadas, which were previously only available at select stores, in all stores. Despite increases in raw material costs due to rising food prices, increases in labor costs due to staffing needs, and increases in store opening expenses due to continued favorable store openings, profits increased due to increased sales.
Ramen Zundoya, a pork bone ramen specialty restaurant, opened its Hiroshima Yano store (Hiroshima) on July 11th, bringing the total number of stores to 106. From July 1st, the company launched a new product, "Zundoya Style Cold Ramen," for a limited time, and also launched "Japanese Black Beef Roast Beef Ramen" at select stores exclusively for foreign visitors to Japan. Both new and existing stores performed well, resulting in increased sales and profits.
In other business formats, existing stores, particularly Tempura Makinoya, a tempura specialty store that serves freshly fried food whenever you need it, and Banbaya, a standing bar, performed well, leading to sales revenue of 20,328 million yen (up 19.5% year on year), a record high for an interim period.Although there was an impact from persistently high raw material costs, this was absorbed by increased sales, and operating profit increased to 2,252 million yen (up 1.7% year on year).
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, saw a slight decrease in revenue due to strategic closures of unprofitable stores in China and Singapore implemented in the previous fiscal year. However, the company strengthened its control over delivery costs, which had been putting pressure on profits in the previous fiscal year, and also successfully controlled costs such as cost of goods and labor costs. Furthermore, the company also achieved an increase in profits thanks to the effectiveness of reviewing its own app and implementing various campaigns. Furthermore, the company is also moving forward with opening new stores outside of Hong Kong, such as its first store in Malaysia on July 29th.
Although MARUGAME UDON saw a decrease in revenue due to the franchising of its UK business implemented in the previous fiscal year, strong performance in each base in Taiwan, North America, etc. resulted in an overall increase in revenue, and the UK business also turned profitable, resulting in a significant increase in profits.In addition, the company opened its first store in Dubai, UAE on July 3rd, and the first store of its re-opening in Seoul, South Korea on September 15th, both of which are performing well.
Fulham Shore, based in the UK, is seeing a moderate recovery in the UK economy, and it will still take some time for the restaurant market to recover. However, by sending personnel with a high level of knowledge of domestic business to the company, it has begun to see some positive effects in improving productivity and profitability at model stores, and further verification is underway.
We are also flexibly reviewing the business portfolio within our overseas business segment. Tam Jai International Co. Limited, which operates Tam Jai, has been smoothly undergoing share acquisition procedures to delist the company, which became effective on August 15th. The company was delisted from the Hong Kong Stock Exchange on the 19th of the same month, becoming a wholly owned subsidiary of our company. Consolidated subsidiary WOK TO WALK FRANCHISE BV also became a wholly owned subsidiary on August 13th through the acquisition of additional shares. Additionally, we sold our shares in MC GROUP PTE. LTD., which operates MONSTER CURRY restaurants mainly in Singapore, on September 30th.
As a result, revenue was 50,115 million yen (down 2.8% year on year), and business profit increased significantly to a record high for an interim period of 2,550 million yen (up 177.7% 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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