Skylark Holdings Q1 Net Profit Jumps 27% as Restaurant Traffic Recovery Boosts Revenue 8.6%

Skylark Holdings Co., Ltd. (TSE: 3197), Japan's largest casual dining group operating the Gusto, Bamiyan, Jonathan's, Shabu Yo, and Yumean chains among others, reported consolidated first-quarter results for FY2026/12 (the three months ended March 31, 2026) under IFRS that showed strong broad-based momentum. Revenue (売上収益) rose 8.6% year-on-year to ¥121,263 million, against ¥111,670 million in the same period of the prior year. Business profit (事業利益) — the company's primary IFRS operating profitability metric, defined as revenue less cost of sales and selling, general & administrative expenses — climbed 10.6% to ¥9,089 million from ¥8,220 million. Operating profit (営業利益), which additionally reflects other operating income and expenses, advanced 17.0% to ¥8,910 million.

The improvement in operating leverage was reflected throughout the P&L. Pre-tax profit (税引前利益) rose 15.8% to ¥7,871 million, and quarterly net profit attributable to owners of the parent increased a sharper 27.0% to ¥5,524 million (from ¥4,349 million), reflecting a favourable effective tax rate. Basic earnings per share came in at ¥24.29, up from ¥19.12 a year earlier. EBITDA expanded 11.4% to ¥21,843 million, while adjusted EBITDA rose 10.3% to ¥22,549 million. Total comprehensive income for the quarter surged 50.2% to ¥6,090 million, reflecting both the improved underlying profit and revaluation movements.

Balance sheet remains solid as portfolio grows

At the close of the quarter (March 31, 2026), consolidated total assets stood at ¥521,157 million, up from ¥518,549 million at the December 31, 2025 fiscal year-end. Total equity attributable to owners of the parent was ¥190,072 million, versus ¥187,567 million at year-end, and the equity ratio improved to 36.5% from 36.2%. Skylark uses capital-intensive IFRS lease accounting (IFRS 16), which means the bulk of restaurant lease liabilities are on balance sheet — a factor that shapes the absolute leverage ratios while leaving the operating cash generation picture broadly unchanged.

Full-year guidance maintained; interim dividend of ¥10 forecast

The company left its full-year FY2026/12 guidance unchanged. Revenue is expected to reach ¥490,000 million (+7.0% YoY), business profit ¥36,000 million (+9.1%), operating profit ¥33,500 million (+11.8%), pre-tax profit ¥29,700 million (+13.0%), and net profit attributable to owners ¥19,500 million (+16.4%), equating to a full-year EPS of ¥85.71. No changes to the consolidated scope or accounting policies were noted during the quarter. For dividends, the Q2 (interim) dividend is forecast at ¥10.00 per share; the prior-year full-year dividend was ¥26.00 per share (¥8.00 interim + ¥18.00 year-end was previously indicated as ¥14+¥8=¥22). No modification to the most recently published dividend forecast was announced.

Skylark's structural position in Japan dining

Skylark is the dominant player in Japan's family-restaurant segment, with a nationwide network of restaurants across price tiers — from the low-cost Gusto (its largest brand) to the Chinese-cuisine Bamiyan, the classic family diner Jonathan's, the shabu-shabu specialty chain Shabu Yo, and the Japanese-cuisine Yumean, among others. The company has benefited from a multi-year wave of domestic consumption recovery since the pandemic, pricing power as it has passed on cost increases, and ongoing efficiency gains from digitisation of ordering (tablet ordering systems are standard across most chains) and kitchen automation. The Q1 result — the seasonally weakest quarter of the calendar year due to the January–March off-peak period — sets a solid foundation for the busier summer months and the company's path to FY2026 guidance.

* December 31, 2025 year-end figure for comparison.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.