7127.T

• Group Consolidated Performance

  • First half consolidated revenue is 5.215 billion yen, 44.9% of the full-year forecast of 11.629 billion yen, and is tracking above the full-year forecast at the mid-point. Net loss attributable to parent company shareholders is 52 million yen, with a smaller deficit than the prior year due to improved profitability in the food service segment. The company maintained a strong cash position after securing 730 million yen in new borrowings in the first half.

• Food Service Operations

  • Opened 2 new stores and converted 2 underperforming stores to new formats by September 2025, bringing total directly operated stores to 89. Full-year planned new store openings total 6, with 1 more new store scheduled to open in the second half. Existing same-store sales grew 2.8% YoY, with high-performing formats including 大衆ジンギスカン酒場ラムちゃん (+8.0% YoY) and 屋台屋 博多劇場 (+2.7% YoY). Format conversion of 2 underperforming Korean food stalls delivered strong results, with one location seeing sales nearly double on low conversion costs. The company will focus new store expansion on 3 core high-performing formats, and is currently recruiting franchise partners for national expansion of 大衆ジンギスカン酒場ラムちゃん. Corrected prior year's delayed price adjustment strategy, implementing menu price reviews across all formats to normalize cost ratios while balancing customer satisfaction via app-based promotional offers.

• Bridal Operations

  • Revenue growth was driven by higher ceremony execution volumes from strong prior period booking, though average party size and average price per event have declined due to the trend towards smaller weddings. The overall bridal market is shrinking due to demographic shifts and changing consumer preferences, so the company prioritizes attracting new first-time visitors to its venues, leveraging its already industry-above average closure rate to convert visits to bookings. Hosted large in-house customer acquisition events aligned with peak travel periods (a new initiative not done in prior years), and continues to use Instagram and other social media advertising to build brand awareness. For the second half peak season, the company is running Christmas dining and proposal event promotions to convert casual visitors into new wedding bookings.

• Leisure Operations / THE BOTANICAL RESORT 『林音』

  • Completed all pre-opening development for the new resort, which opens November 29, 2025, on the site of the existing Ibaraki Prefectural Botanical Garden and Ibaraki Prefectural Citizen's Forest, redeveloped into Japan's first

• Full-year 2026 March fiscal year guidance is maintained at 11.629 billion yen consolidated revenue, and first half results are currently tracking above this original forecast.
  • As THE BOTANICAL RESORT 『林音』 scales, management expects it will smooth the group's historical seasonal revenue concentration in Q3 (from food and bridal seasonality), since leisure demand peaks in July and August.
  • Management targets for THE BOTANICAL RESORT 『林音』 are 1.1 billion yen+ annual revenue and 170 million yen+ operating profit (15%+ operating margin) by the 2030 March fiscal year, with a long-term target of 380,000 annual visitors.

1. Food Service Segment: Revenue reached 4.186 billion yen, an 8.7% increase year-over-year (YoY). It achieved operating profit of 61 million yen, turning to net profit with improved profitability. It contributes approximately 80.3% of total group consolidated first half revenue. 2. Bridal Segment: Revenue reached 814 million yen, a 17.2% increase YoY. Operating loss came to 157 million yen, with a narrowed deficit compared to the prior year. It contributes approximately 15.6% of total group consolidated first half revenue. 3. Leisure Segment: The segment was newly restructured this fiscal period, incorporating previously food service-operated BBQ and beer garden operations, and only recorded pre-opening costs for THE BOTANICAL RESORT 『林音』 in the prior year. No full YoY comparable profit figure was reported for the first half, as operations are still in the pre-launch phase for the core resort property.

• Continued rising raw material costs put pressure on food service gross margins, requiring ongoing menu adjustments to maintain profitability while avoiding customer dissatisfaction.
  • The overall bridal market is experiencing long-term shrinkage due to declining birth rates, population aging, rising prices, and diversifying consumer demand for weddings, creating ongoing pressure to attract new customers in a shrinking market.
  • The new leisure resort segment is unproven for the company, and success depends on attracting sufficient visitor volumes and achieving targeted repeat customer rates to meet long-term profit goals.

No formal question and answer section was included in the provided transcript.