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Thank you very much for your continued support.

We would like to report on the financial results for the second quarter of FY2025 and the progress of business strategies announced on August 14. 

Achieved Sales and Profit Growth in Q1-Q2 2025, with Existing Stores at 108.3%. ROE Grew to 9.0%

• Sales: 221 billion JPY (+15.4% YoY), Operating Profit: 13.9 billion JPY (+16.4% YoY), Net Income: 7.9 billion JPY (+25.2% YoY)
• Existing Store Sales: 108.3% YoY
• Overcoming Inflation: Business profit (*1) increased by 26% YoY due to sales growth and improvements in gross profit/cost.
• M&A Effect: 12.2 billion JPY increase in sales and 1.3 billion JPY increase in profit (Sukesan / Malaysian SUKI-YA).
• ROE: 9.0%
(*1) Business profit: Sales minus cost of sales and selling, general & administrative expenses. An indicator of core business profit.　

Reasons for Strong Existing Stores: "Menu" Responding to the Polarization of Consumption, "Advanced Promotion System," and "Store-Centered Management"

Increase in Guest Count / Average Check:

• An improved cross-selling rate due to "high cost-performance menus" and "menus that enhance the enjoyment and experiential value of dining out," and the evolution of promotions like "dynamic coupons by region," have led to an increase in repeat visits and customer traffic. Future plans include a transition to store-specific and individual-specific coupon distribution.

Store-Centered Management: Improving store managers' sales capabilities / investing in labor hours

• Achieved profit growth that exceeds the rate of sales growth. *Increased labor hours, increased sales, reduced labor cost ratio.

Profitability of Our Mid-Term Management Plan is Trending Well

Existing Store Growth: 8.3% in H1 (annual plan is 3-4%)
New Stores in H1: 45 stores (23 in Japan (*2), 22 overseas (*3))

• 14 new Skylark Restaurants stores achieved high profitability with sales 132% and profit 155% compared to existing stores.
• Sukesan / Malaysian SUKI-YA: high sales / high profitability.
(*2) Includes 5 Suke-san Udon stores. (*3) Includes 13 Malaysian SUKI-YA M&A stores.

Future Store Openings: Limiting the number of stores in the mid-term business plan

• Due to economic uncertainty/soaring construction costs, the policy is to prioritize opening stores in carefully selected, highly profitable locations and recovering investments.
• Even with a limited number of store openings, profitability is trending higher than planned.

M&A: High synergy projects / brand portfolio / projects that align with our store portfolio

Two Strong M&A Companies (Sukesan / Malaysian SUKI-YA) are Driving Store Expansion

Sukesan Udon: New stores opened in 2025 are achieving high sales and high profits, approximately three times that of existing Skylark brands.

• We plan to open 30 stores in existing areas (Kanto, Kansai, Chugoku, and Kyushu) in 2026.
• After 2027, we are considering nationwide expansion and expansion into Taiwan and Southeast Asia.

Malaysian SUKI-YA: High sales / high-profit business format

• With the improvement of the Malaysian people's lifestyle, the restaurant market is expanding. We plan to open 70 to over 100 stores in Malaysia, leveraging our brand power in the Muslim market along with economic growth.
• We are also considering future expansion into Indonesia.

Moving forward, we will continue to respond swiftly to changes in the business environment, execute our growth strategy, aiming to enhance corporate value.

We kindly ask for your continued support to all our stakeholders.

 

Makoto Tani  Chairman and CEO
Minoru Kanaya  President and COO
SKYLARK HOLDINGS CO., LTD.
August 14, 2025

FY2025 Q2 Skylark Financial Results Presentation Material