Sagami Holdings Co., Ltd. (TSE: 9900) reported consolidated results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue grew 12.3% to ¥39,359 million, building on the prior year's 12.9% expansion, while operating profit surged 44.6% to ¥2,977 million. Ordinary profit rose 42.6% to ¥3,046 million and net profit attributable to owners of the parent increased 19.3% to ¥1,618 million. Basic earnings per share climbed to ¥53.72 from ¥44.93, while return on equity strengthened to 8.6% and the operating margin widened to 7.5% from 5.8% a year earlier — evidence of improving operational leverage as the restaurant group's dining traffic normalised fully.
Revenue momentum across the restaurant network
Sagami Holdings operates two primary dining concepts: the Sagami brand of traditional Japanese cuisine restaurants and the Washoku Sato family-restaurant chain. Both benefited from sustained recovery in dine-in traffic as post-pandemic consumer behaviour normalised. The group's revenue trajectory — up double digits for a second consecutive year — reflects both like-for-like sales gains at existing stores and the gradual optimisation of its outlet portfolio. Cost discipline, including procurement improvements and labour scheduling, amplified the operating profit recovery to a pace well ahead of revenue growth. The operating margin's 1.7-percentage-point expansion to 7.5% marks a meaningful step toward the group's longer-run profitability targets.
Balance sheet and cash flow position
Total assets stood at ¥27,123 million (¥25,297 million a year earlier), while net assets grew to ¥19,659 million from ¥17,824 million. The equity ratio improved to 72.4% from 70.4%, and book value per share rose to ¥652.59 from ¥591.78 — reflecting retained earnings growth. Operating cash flow strengthened to ¥3,720 million from ¥2,219 million, providing improved capacity for store-level reinvestment. Investing cash outflows were ¥3,363 million, and financing activities used ¥1,613 million; cash and equivalents at year-end stood at ¥5,076 million, down from ¥6,335 million, reflecting the higher capex cycle.
Dividend maintained at ¥12; FY27 guidance reflects investment phase
The board maintained the FY3/2026 annual dividend at ¥12.00 per share (¥0 interim + ¥12.00 year-end), with a payout ratio of 22.2% — unchanged in the year-end amount from the prior year's ¥10.00 total (which had been structured differently). For FY3/2027, management guided consolidated revenue of ¥40,500 million (+2.8%), operating profit of ¥2,400 million (−19.4%), ordinary profit of ¥2,450 million (−19.5%), and net profit of ¥1,200 million (−25.8%), with EPS of ¥39.83. The planned dividend for FY3/2027 is ¥12.00, unchanged. The profit step-down reflects management's investment in store renovation, brand refreshes, and wage increases to remain competitive in Japan's tightening labour market — a common theme across the casual-dining sector.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 39.4 | 35.0 | +12.3% |
| Operating profit (¥ billion) | 2.98 | 2.06 | +44.6% |
| Ordinary profit (¥ billion) | 3.05 | 2.13 | +42.6% |
| Net profit attrib. to owners (¥ billion) | 1.62 | 1.36 | +19.3% |
| EPS (¥) | 53.72 | 44.93 | +19.6% |
| Operating margin | 7.5% | 5.8% | +1.7pp |
| ROE | 8.6% | 7.8% | +0.8pp |
| Equity ratio | 72.4% | 70.4% | +2.0pp |
| Operating cash flow (¥ billion) | 3.72 | 2.22 | +67.6% |
| Annual dividend (¥) | 12.00 | 10.00 | +20.0% |
| FY27 operating profit guidance (¥ billion) | 2.40 | — | −19.4% |
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.