FOOD & LIFE COMPANIES (3563): FY2025 Results Summary — Record Results as International Business Tops 30% of Group Sales

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: FOOD & LIFE COMPANIES’ fiscal year ends on September 30, and the company labels the fiscal year ended September 30, 2025 as “FY25/9”; this article follows the site convention of classifying the latest completed fiscal year as FY2025 while keeping the company’s own labels in tables and figures.

FOOD & LIFE COMPANIES LTD. (3563), the operator of the Sushiro conveyor-belt sushi chain, achieved record-high revenue and profit in FY25/9. Consolidated revenue reached 429,574 million yen, up 19.0% year on year, and operating profit rose 54.4% to 36,093 million yen. Profit for the period attributable to owners of the parent increased 56.7% to 22,937 million yen. In addition to growth in the Japan Sushiro business, the International Business posted significant increases in both revenue and profit, with its sales composition exceeding 30% of the group total.

Consolidated Results (Full-Year Actual)

All headline items exceeded the full-year forecast announced on August 6, 2025: revenue came in at 102.0% of the forecast, EBITDA at 105.2%, operating profit at 103.1%, and profit for the period at 109.2%. The group store count grew by 43 stores during the year to 1,198. EBITDA is defined by the company as operating profit adjusted for depreciation and amortization (excluding depreciation/amortization of right-of-use assets) and impairment.

Item (Millions, JPY)	FY25/9	FY24/9	YoY	vs. Forecast
Revenue	429,574	361,129	19.0%	102.0%
EBITDA	52,079 (12.1% of revenue)	37,485 (10.4% of revenue)	38.9%	105.2%
Operating Profit	36,093 (8.4% of revenue)	23,384 (6.5% of revenue)	54.4%	103.1%
Profit for the Period (attributable to owners of the parent)	22,937 (5.3% of revenue)	14,633 (4.1% of revenue)	56.7%	109.2%
Store Count	1,198	1,155	43	–

Balance-sheet and capital-efficiency indicators also improved. ROE rose to 26.9% in FY25/9, up approx. 7pt year on year. The equity ratio increased to 24.0% from 20.5%, and Net Debt / EBITDA improved to 0.4x from 0.9x. Operating cash flow was 64,429 million yen, versus 56,326 million yen in FY24/9.

Segment Results

The Japan Sushiro business grew revenue 11.6% to 265,903 million yen with operating profit up 21.7% to 25,994 million yen, supported by full-year revenue LFL of 110.1% (107.2% in the first half, 112.9% in the second half) despite the high hurdle set by the previous year’s 40th-anniversary campaigns. The International Business increased revenue 42.6% to 131,420 million yen and more than doubled operating profit (up 105.1% to 20,340 million yen), driven especially by strong performance in Mainland China, where numerous stores set new record highs for daily sales. The Kyotaru business improved profitability while closing unprofitable stores, and the Japan Sugidama segment expanded its store network. Segment EBITDA and operating profit are figures before cross-segment royalty payments.

Segment (Millions, JPY)	Metric	FY25	FY24	Increase/Decrease
Japan Sushiro	Revenue	265,903	238,173	11.6%
Japan Sushiro	Operating Profit	25,994	21,355	21.7%
Int’l Business	Revenue	131,420	92,138	42.6%
Int’l Business	Operating Profit	20,340	9,915	105.1%
Kyotaru Business	Revenue	23,425	23,939	▲2.2%
Kyotaru Business	Operating Profit	766	368	107.9%
Japan Sugidama	Revenue	8,153	6,806	19.8%
Japan Sugidama	Operating Profit	271	439	▲38.4%

FY26/9 Forecast

For FY26/9, the final year of the FY26 Medium-term Management Plan, the company targets consolidated revenue of 485.0 bil. JPY (revenue growth vs. FY25 of 12.9%), operating profit of 40.5 bil. JPY, and an operating profit margin of 8.4%. EPS is forecast at 211.91 JPY, an increase of 9.20 JPY versus FY25, with ROE forecast at 22.7% and 105~115 new store openings planned. By segment, Japan Sushiro targets revenue of 285.0 bil. JPY and operating profit of 28.1 bil. JPY, while the International Business targets revenue of 170.0 bil. JPY, operating profit of 24.2 bil. JPY, and an expansion of the international store count to 300~320 stores at a record pace of new openings, including the entry into the Shanghai market with two stores opening in December 2025 and the planned opening of the first Sushiro model store in the U.S. The company plans capital expenditure of approx. 36.4 billion JPY in FY26.

Item (Billions, JPY)	FY26 Forecast	FY25 (Actual)
Revenue	485.0	429.6
EBITDA	59.5 (12.3%)	52.1 (12.1%)
Operating Profit	40.5 (8.4%)	36.1 (8.4%)
Profit for the Year (attributable to owners of the parent)	24.0 (4.9%)	22.9 (5.3%)
EPS	211.91 JPY	202.71 JPY
ROE	22.7%	26.9%

Shareholder Returns

The company plans to raise the regular dividend (year-end dividend) for the fiscal year ending September 2025 by 7.5 JPY from the previous 27.5 JPY to 35.0 JPY per share. For the fiscal year ending September 2026, the regular dividend (year-end dividend) is forecast at 35.0 JPY per share. In addition, shareholders receive discount coupons usable at the group’s stores in Japan twice annually, based on the number of shares held, with larger allotments for shareholders with a holding period of 3 years or longer.

Medium-Term Plan / Topics

Under the FY26 Medium-term Management Plan, the company targets revenue of 485.0 bil. JPY, EBITDA of 59.5 bil. JPY, operating profit of 40.5 bil. JPY and an operating profit margin of 8.4% in FY26, up from revenue of 301.7 bil. JPY and operating profit of 11.0 bil. JPY in FY23. Looking further ahead, the FY35 Vision calls for revenue of over 1 tri. JPY, an operating profit margin of 10%, ROE of over 20%, and an international sales ratio of 55%. In FY25, revenue of the international business exceeded 30% of the group total; the first Sushiro stores in Mainland China opened in Suzhou (December) and Hangzhou (April), the first store in Malaysia — the fourth market in Southeast Asia — opened in February, and Sushiro in Indonesia expanded to its 8th store. The international store network reached 234 stores at FY25/end, with 300~320 stores targeted for FY26. In Japan, the ‘Digiro’ system has been rolled out to 123 Sushiro stores, and a new ‘Small Box Model’ store format for metropolitan station-front locations has performed favorably.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.