Financial Review
During the first quarter of the consolidated fiscal year (April 1, 2026 to June 30, 2026), the Japanese economy showed signs of gradual recovery, with improvements in employment and income conditions. However, consumer sentiment remained cautious due to continued price increases. The trend towards selective consumption, which emphasizes the value of goods and services, has intensified, and the business environment remains uncertain due to trends in energy and raw material prices and rising geopolitical risks.
In this environment, our group undertook a review and restructuring of our overseas business portfolio. In addition, domestically, we strengthened our business foundation and worked to further evolve the taste and experiential value of our products, as well as implementing various measures to enhance the well-being of each employee under the principle of Happiness Capital Management.
As a result, sales revenue reached 72.318 million yen (up 3.5% year-on-year), the highest ever for the first quarter of the consolidated fiscal year.
Operating profit (Note 1) was 5,776 million yen (down 9.3% year-on-year). In the Marugame Seimen segment and the domestic other segment, the increase in personnel costs and other expenses could not be fully absorbed by the increase in sales, resulting in a decrease in profit. On the other hand, in the overseas business segment, profit increased due to the strong performance of Tam Jai and contributions from the Marugame Asia business.
Furthermore, in connection with the business restructuring at our overseas subsidiaries, we recorded gains from the termination of leases for closed stores, losses from the disposal of fixed assets, and one-time restructuring costs. As a result, other operating income amounted to million yen and other operating expenses amounted to 1,665 million yen. Consequently, operating profit (Note 2) decreased to 5,294 million yen (down 34.3% year-on-year), and quarterly profit attributable to owners of the parent company also decreased to 3,031 million yen (down 31.0% 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, under the concept of "We want to surprise you even more with udon," we are working on various measures to increase repeat customers and generate more motivation for customers to visit our stores by combining essential experiential value with new experiential value. In addition to developing categories that create new value and developing products that leverage Marugame Seimen's strengths, we are also focusing on further human resource development, including the training of Happy Can Captains (Note 6).
Marugame Seimen, which seeks to provide KANDO Dining Experiences, launched a new product category, "Marugame Udon Meshi," with four varieties available from April 7th. By stimulating all five senses and cooking the dishes on a hot grill pan right in front of the customer after they order, and then serving them immediately, the company offers a dining experience that truly liberates and unleashes primal instincts. The new product has been enjoyed by a wide range of customers, with over 200,000 servings sold in approximately one week since its launch.
Regarding seasonal fair products, we launched our ever-popular "Tomato and Egg Curry Udon Series" on April 21st. This year, in an effort to deliver both deliciousness and surprise, we released a new "Shrimp Cutlet Tomato and Egg Curry Udon" featuring three large shrimp. By the end of June, we had sold a total of 2.34 million servings of the series, receiving a great response.
From June 2nd, we launched our summer staple, the "Oni Oroshi Series," and also introduced a wide range of products for the hot summer, including new seasonal cold udon dishes such as "Chilled Mentaiko Cream Udon" and "Chilled Sudachi Oroshi Udon."
Furthermore, the "Sanuki Udon Craftsman Festival 2026," based on the concept of connecting, spreading, and enhancing the charm and culture of Sanuki udon, was held at the Kanda Ogawacho store from May 25th to 27th. Six renowned Sanuki udon restaurants gathered, and many udon lovers came seeking an experience that could only be enjoyed there, and savored the charm of Sanuki udon.
In addition, as part of our delicious and thoughtful service, "A Surprise!", we held a free noodle portion increase campaign for three days only, from May 27th to 29th, allowing many customers to enjoy freshly made udon noodles.
Thanks to these efforts, sales revenue reached a record high for the first quarter of the consolidated fiscal year, at 36.509 million yen (up 3.2% year-on-year). However, it was not enough to absorb the increase in personnel costs and other expenses, resulting in a decrease in operating profit to 5.665 million yen (down 16.0% year-on-year).
(Note 6) Marugame Seimen's store manager system aims to achieve store success by enhancing employee happiness and customer satisfaction.
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.
Konaz Coffee, whose concept is "the closest Hawaii," is accelerating its expansion, opening its second store in Okinawa Prefecture, the Naha Shintoshin Park store, on April 17th, followed by the Natori store (Miyagi) on April 23rd, and the PALM WAGON Sendai Station West Exit store (Miyagi) on April 27th. The company is also focusing on developing new business formats, and on May 28th, it opened a new brand of Hawaiian cafe and bar restaurant, "goodNess." Based on the concept of "Hawaiian delicacies," it opened in a highly convenient location directly connected to Shibuya Station, and as a dining restaurant where customers can enjoy meals with alcohol, it creates a special, extraordinary feeling as if they have taken a trip to a resort, even though it is in the heart of the city. Although revenue increased due to the successful expansion, profits decreased due to increased labor costs and increased opening expenses.
Ramen Zundoya, a specialty tonkotsu ramen restaurant, opened its first food court location at Aeon Mall Kobe Kita (Hyogo) on April 20th, and its fourth location in Mie Prefecture, the Tsumotomachi store, on April 22nd.
In other business sectors, we opened one store under the name Nagata Honjo-ken and one under the name Banpaiya, both of which performed well.
As a result, sales revenue reached 10,462 million yen (up 5.0% year-on-year), the highest ever for the first quarter of the consolidated fiscal year. However, the increase in personnel costs and other expenses could not be fully absorbed, resulting in a decrease in operating profit to 964 million yen (down 15.0% year-on-year).
The overseas business segment mainly consists of "Tam Jai," which operates spicy rice noodle dishes in Hong Kong; "MARUGAME UDON," which operates Marugame Udon restaurants in Asia and North America; and "Fulham Shore," which operates Neapolitan pizza restaurants "FRANCO MANCA" in the UK, along with several other brands.
Tam Jai achieved increased revenue and profits thanks to the success of new store openings, strong performance at existing stores, and effective cost control measures including cost of goods sold and labor expenses.
MARUGAME UDON achieved increased revenue and profits thanks to the steady progress of its various locations in Asia, including Taiwan, and North America.
Fulham Shore undertook a radical business restructuring, utilizing legal schemes to terminate leases on unprofitable stores and sell and withdraw from The Real Greek business, with the aim of increasing the profitability and sustainability of its operations.
As a result, net sales reached 25.346 million yen (up 3.4% year-on-year), and operating profit increased to a record high of 1.853 million yen for the first quarter of the consolidated fiscal year (up 62.6% year-on-year).
Monthly sales
Consolidated Financial Statements
Earnings Forecast
Consolidated earnings forecast for the fiscal year ending March 2027(April 1, 2026 - March 31, 2027)
million yen (year-on-year change)
sales revenue | 287,000（+3.0％） |
|---|---|
business profit | 22,000（+2.5%） |
Operating income | 17,000（＋60.7%） |
Profit attributable to owners of the parent company | 7,000（+202.9%） |
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