Eternal Hospitality, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 7% Decrease

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Fri Mar 7, 2025 3:30 pm JST Earnings

3193 Eternal Hospitality Group Co.,Ltd. 【J-GAAP】

Earnings Report

Eternal Hospitality Group Co.,Ltd. <3193> [TSE Prime] announced its financial results after the market closed on March 7th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending July 2025 (August 2024 to January 2025) decreased 20.6% from the same period last year to 1.33 billion yen, resulting in a decrease in profits compared to the previous forecast of a 7.8% increase.

In addition, the full-year consolidated ordinary profit has decreased 23.8%, from the previous forecast of 3.97 billion yen to 3.02 billion yen (compared to 3.26 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 7.2% decrease in profit.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the February to July period (2H) is expected to grow 7.0% from the same period last year, reaching 1.69 billion yen.

In the most recent three-month period, from November to January (2Q), the consolidated ordinary profit dropped to 0.58 billion yen, a 36.1% decrease compared to the same period last year. The operating profit margin drastically worsened from 8.7% in the same period last year to 5.3%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Aug - Jan, 2022	15,266	362	362	112	9.8	25.3	Mar 10, 2023	J-GAAP
Aug - Jan, 2023	20,046	1,661	1,676	1,061	91.6	51.4	Mar 8, 2024	J-GAAP
Aug - Jan, 2024	22,186	1,320	1,330	755	65.5	44.0	Mar 7, 2025	J-GAAP
YoY	+10.7%	-20.5%	-20.6%	-28.8%	-28.5%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Aug - Jan, 2024 Guidance	23,246	1,816	1,806	1,151	99.9	23	Sep 13, 2024	J-GAAP
Aug - Jan, 2024 Results	22,186	1,320	1,330	755	65.5	23	Mar 7, 2025	J-GAAP
Revision Rate	-4.6%	-27.3%	-26.4%	-34.4%	-34.4%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul, 2025 Prev	47,822	4,003	3,972	2,578	223.5	46	Sep 13, 2024	J-GAAP
Jul, 2025 New	45,335	3,036	3,026	1,800	156.1	46	Mar 7, 2025	J-GAAP
Revision Rate	-5.2%	-24.2%	-23.8%	-30.2%	-30.2%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb - Jul, 2024	21,868	1,587	1,585	1,066	92.1	23	Sep 13, 2024	J-GAAP
Feb - Jul, 2025 Guidance	23,149	1,716	1,696	1,045	90.6	23	Mar 7, 2025	J-GAAP
YoY	+5.9%	+8.1%	+7.0%	-2.0%	-1.6%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul, 2023	33,449	1,417	1,429	616	53.2	10	Sep 13, 2023	J-GAAP
Jul, 2024	41,914	3,248	3,261	2,127	183.7	29	Sep 13, 2024	J-GAAP
Jul, 2025 Guidance	45,335	3,036	3,026	1,800	156.1	46	Mar 7, 2025	J-GAAP
YoY	+8.2%	-6.5%	-7.2%	-15.4%	-15.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Nov - Jan, 2023	10,420	911	922	584	50.4	8.7	Mar 8, 2024	J-GAAP
Feb - Apr, 2024	10,867	1,037	1,039	654	56.5	9.5	Jun 7, 2024	J-GAAP
May - Jul, 2024	11,001	550	546	412	35.6	5.0	Sep 13, 2024	J-GAAP
Aug - Oct, 2024	10,937	728	741	428	37.2	6.7	Dec 6, 2024	J-GAAP
Nov - Jan, 2024	11,249	592	589	327	28.4	5.3	Mar 7, 2025	J-GAAP
YoY	+8.0%	-35.0%	-36.1%	-44.0%	-43.7%