Financial Review
During the third quarter of the current consolidated fiscal year (April 1, 2025 to December 31, 2025), the Japanese economy showed a gradual recovery in consumer trends due to improvements 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 heightened 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 million yen (up 4.3% year-on-year), the highest ever for the third quarter of the consolidated fiscal year. The Marugame Seimen and Domestic Other segments also achieved record highs. The Marugame Seimen and Domestic Other segments saw increased revenue due to favorable performance at existing stores and 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.
Normalized operating profit (Note 1) reached 15,895 million yen (up 13.1% year on year), the same as revenue, the highest ever for the third quarter consolidated cumulative period. Both the Marugame Seimen segment and the Overseas Business segment also achieved record highs. The Marugame Seimen segment achieved an increase in profits as increased sales offset increases in raw material costs, etc. The Domestic Others segment saw a slight decrease in profits as increased sales were unable to fully offset increases in raw material costs and labor costs. The Overseas Business segment achieved an increase in profits due to the contribution of strong Asian businesses, despite the UK business taking some time to recover.
In addition, other operating income was 2,441 million yen due to the recording of insurance payments related to store closure compensation (due to the COVID-19 pandemic) at an overseas subsidiary, as well as gains on lease cancellations due to store closures. Meanwhile, other operating expenses were 1,825 million yen due to the recording of a loss on the sale of shares in an overseas subsidiary. As a result, operating profit (Note 2) reached 16,268 million yen (up 41.0% year on year), the highest ever for the third quarter of the consolidated cumulative period, and profit attributable to owners of the parent increased to 8,654 million yen (up 44.8% 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 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.
Marugame Seimen, a Sanuki udon specialty store committed to handmade, freshly made noodles, celebrated its 25th anniversary on November 21, 2025, with numerous events held to celebrate the company's 25 years of skill, passion, and gratitude. The company also held the "Marugame Udon Festival 2025," a special event in Marugame City, Kagawa Prefecture, on November 21 and 22, offering a variety of Sanuki udon experiences. The event included a Guinness World Record™ udon tasting attempt, the "Marugame Kuipuri! Grand Prix," and a special collaboration between two renowned Sanuki udon restaurants, with over 20 events featuring special guests. Approximately 30,000 people attended over the two days, exceeding expectations, creating a lively atmosphere at the venue.
As part of our seasonal fair product initiatives, we launched the new "Tasty Spicy Meat-Topped Chive and Egg Bukkake Udon" on October 7th, which is made with eight different ingredients to fully enjoy the autumn appetite, and the nationwide local project "My Town Udon 47" on October 21st, which was more powerful than last year's. Noodle craftsmen from all over the country came up with "My Town Udon" that made use of the food culture and ingredients of each of the 47 prefectures, and it was very well received as a local flavor that can only be enjoyed in that region. From November 25th, we also launched two popular winter products that are filled with delicious flavor, "Duck and Green Onion Udon" and "Oyster and Egg Udon with Thick Sauce," as well as the new "Rich and Delicious Oyster Butter Bukkake Udon," which received a great response.
Furthermore, Marugame Udon Nuts, which originated from udon, launched a new "Marron Flavor" using chestnuts, a taste of autumn, on October 7th, and from December 2nd began selling two new flavors simultaneously: "Reward Chocolate Flavor" and "Happy Milk Flavor," both made with rich double chocolate. The flavors have been extremely well received by many customers, with some even purchasing both flavors in anticipation of the different chocolate flavors, and the customer base has expanded.
As a result of these efforts, revenue reached million yen (up 7.4% year on year), a record high for the third quarter. Increased raw material costs were offset by increased revenue, and business profit also increased to million yen (up 5.6% year on year), a record high for the third quarter.
(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.
Kona's Coffee, which operates under the concept of "the closest Hawaii," has been steadily expanding its store openings, and opened its Okazaki Mii store (Aichi) on November 27. In addition to rising raw material costs due to rising food prices and increased labor costs due to staffing, the acai boom that was strong last year has also subsided, resulting in increased sales but decreased profits.
Ramen Zundoya, a pork bone ramen specialty store, opened its Konan store (Aichi) on October 29th and its Dotonbori store (Osaka) on October 31st, bringing the total number of stores to 108. The new product "Zundoya Style Mazesoba" was released for a limited time on October 1st and became a huge hit. Both new and existing stores performed well, resulting in increased sales and profits.
In other business categories, tempura specialty store Tempura Makino opened its Myoya store (Hyogo) on October 1st, standing bar Banbaya opened its Tenma store (Osaka) on October 10th, and authentic charcoal grilled yakitori specialty store Toridoll opened its Suita store (Osaka) on November 19th, its first new store in the Kansai region in 22 years.All of these stores are doing well.
As a result, revenue reached million yen (up 14.7% year on year), the highest ever for a consolidated cumulative third quarter. However, due to increases in raw material costs and labor costs, business profit decreased slightly to million yen (down 3.9% 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, but profits increased thanks to successful cost control of raw material costs, labor costs, etc. In addition, the company is moving forward with opening new stores in countries other than Hong Kong, such as the opening of its third store in Malaysia on December 14th.
Although MARUGAME UDON saw a decrease in sales due to the franchising of its UK business implemented in the previous fiscal year, overall sales increased due to strong performance at each base, particularly in Asia, and the UK business returned to profitability, resulting in a significant increase in profits.
Although Fulham Shore, based in the UK, is struggling in the sluggish restaurant market, it is working to improve productivity and profitability by sending in personnel with extensive knowledge of domestic business, and is also working to strengthen promotions in the delivery market.
We are also flexibly reviewing the business portfolio within our overseas business segment. Tam Jai International Co. Limited, which operates Tam Jai, has completed a series of share acquisition procedures in preparation for delisting and was delisted from the Hong Kong Stock Exchange on August 19th, becoming a wholly owned subsidiary of our company. WOK TO WALK FRANCHISE BV, a consolidated subsidiary, became a wholly owned subsidiary on August 13th through the acquisition of additional shares. In addition, 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 76,175 million yen (down 3.0% year on year), and business profit increased significantly to a record high of 3,954 million yen (up 104.7% year on year) for the third quarter.
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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