Skylark Holdings (3197): FY2025 Results Summary — Sales Up 14.1% and Business Profit Up 36.0% on Same-Store Growth and M&A

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Skylark Holdings Co., Ltd. (3197), which operates restaurant chains including Gusto, Syabu-Yo, Sukesan Udon and SUKI-YA, announced its results for FY2025 (fiscal year ended December 2025) in its FY2025 Q4 Financial Results Briefing dated February 13, 2026. Sales were 457.8 bn yen (+14.1% YoY), business profit was 33.0 bn yen (+36.0% YoY) and operating profit was 30.0 bn yen (+23.9% YoY). Net income rose 19.9% to 16.7 bn yen, and ROE improved from 8.3% to 9.3%.

Consolidated Results (Full-Year Actual)

Same-store sales in Japan were 108% of the prior year, with traffic at 102% and average ticket price (ATP) at 106%. The company opened 77 new stores (+34 YoY), carried out 36 brand conversions (-28 YoY) and remodeled 223 stores (+136 YoY), counting stores in Japan and overseas. The business profit margin rose from 6.0% to 7.2% and the operating profit margin from 6.0% to 6.5%, which the company attributes largely to the strong sales growth. Adjusted EBITDA was 86.3 bn yen (+16.8% YoY).

Item (Bn yen)	FY2025	% of sales	FY2024	% of sales	%YoY
Sales	457.8	100.0%	401.1	100.0%	+14.1%
Gross margin	305.1	66.7%	270.2	67.4%	+12.9%
Business profit	33.0	7.2%	24.2	6.0%	+36.0%
Operating profit	30.0	6.5%	24.2	6.0%	+23.9%
Income before income tax	26.3	5.7%	21.5	5.4%	+22.4%
Net income	16.7	3.7%	14.0	3.5%	+19.9%
Adjusted EBITDA	86.3	18.9%	73.9	18.4%	+16.8%

Sales and Profit Drivers

The 14.1% sales increase was driven by existing-store growth and M&A effects: existing-store sales added +26.4 bn yen, supported by growth in traffic and ATP, while M&A contributions from Sukesan Udon and SUKI-YA added 23.3 bn yen to sales. On the profit side, an inflation impact of (13.0) bn yen was countered by +17.7 bn yen from existing-store sales growth and COGS reduction initiatives, and M&A contributed +2.3 bn yen to business profit.

Balance Sheet and Cash Flows

Total assets stood at 518.5 bn yen (FY2024: 470.9 bn yen) and total equity at 187.6 bn yen (FY2024: 173.4 bn yen). The company notes strengthened financial stability due to prolonged interest-bearing debt on the balance-sheet side, and increased free cash flow due to increased operating cash flow.

Cash flows (Bn yen)	FY2025	FY2024	YoY
Operating cash flow	74.5	67.9	6.6
Investment cash flow	(34.1)	(39.2)	5.2
Free cash flow	40.4	28.7	11.7
Financial cash flow	(25.5)	(36.4)	10.9
Cash balance at closing	34.3	19.2	15.2

Key Financial Indicators

Metric	FY2025	FY2024	YoY
ROE	9.3%	8.3%	+1.0%
Earnings per share (EPS)	73.62 yen	61.38 yen	+12.24 yen
Net assets per share (BPS)	824.5 yen	762.1 yen	+62.4 yen
Capital adequacy ratio	36.2%	36.8%	(0.6%)
Net D/E ratio	0.48 times	0.51 times	(0.03 times)

Shareholder Returns

For the fiscal year ended December 2025, Skylark paid an interim dividend of 8.00 yen and a year-end dividend of 14.00 yen, for an annual dividend of 22.00 yen per share, in line with the guidance disclosed at Q3. The company states that the annual dividend of 22.00 yen was as expected and that the current shareholder benefit (discount coupon) program will be continued. For FY2026, dividends per share are guided at 26.00 yen (+4.00 yen YoY).

FY2026 Guidance

For FY2026 (fiscal year ending December 2026), Skylark guides for sales of 490.0 bn yen (+7.0% YoY), business profit of 36.0 bn yen (+9.1% YoY) and operating profit of 33.5 bn yen (+11.8% YoY). The company states that the medium-term business plan is to be achieved one year ahead of schedule. Guidance assumptions include same-store sales at 105% YoY (traffic 102%, ATP 103%), 70 new openings, 50 brand conversions, 230~240 remodelings, an exchange rate of 160 yen/USD and capex (incl. M&A) of 50.0 bn yen.

Item (Bn yen)	FY2026 Guidance	FY2025 Actuals	Change (%)
Sales	490.0	457.8	+7.0%
Business profit	36.0	33.0	+9.1%
Operating profit	33.5	30.0	+11.8%
Income before income tax	29.7	26.3	+13.0%
Net income	19.5	16.7	+16.4%
Earnings per share (EPS)	85.71 yen	73.62 yen	–
Dividends per share	26.00 yen	22.00 yen	–

Medium-Term Plan / Topics

On the progress of the medium-term business plan (target period 2025-2027), the company states that both sales and business profit exceeded the plan’s projections in FY2025. Store expansion after M&A continued: Sukesan Udon grew from 74 stores in October 2024 to 94 stores in December 2025, and SUKI-YA from 13 stores in January 2025 to 17 stores in December 2025. In its 2026 growth roadmap, Skylark lists domestic same-store growth as the priority strategy, alongside new store openings and conversions, accelerated overseas expansion (Taiwan multi-store expansion of Sukesan Udon and Syabu-Yo to over 100 stores, accelerated Suki-ya openings in Malaysia, and the start of expansion in Indonesia) and further M&A, with two projects already executed.

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