Garden has cut its net profit forecast for the year to February 2027 from ¥840mn to ¥10mn, a reduction of 98.8%. The prior year's net profit was ¥625mn. The board approved the revision on October 15.
What moved
Sales are now forecast at ¥19.45bn rather than ¥20.35bn, operating profit at ¥430mn rather than ¥1.41bn, and ordinary profit at ¥280mn rather than ¥1.28bn. Garden's first-half net profit was ¥101mn, already above the new full-year figure.
The company's explanation
Garden says new openings went roughly to plan, but price revisions made in response to higher raw material costs meant that existing-store traffic recovered less than assumed. On profit, it cites a lower gross margin from visit-promotion measures, opening preparation costs, the cost of converting stores to its ramen-and-oil-noodle hybrid format, and higher staffing and other overheads. The notice does not quantify the traffic shortfall.
The earnings presentation lists ¥235.9mn of first-half costs tied to openings and promotions, including ¥103.0mn for campaigns such as all-you-can-eat rice and ¥83.3mn for new-store preparation. It also shows existing-store sales at 94.4% to 95.3% of year-earlier levels from March to June and 98.1% to 102.8% from July to September, after the hybrid rollout began.
Dividend held
Garden's annual dividend forecast is unchanged at ¥90 per share, which the company says reflects confidence in medium-term growth and its stance on shareholder returns. It cites a policy guideline of a 40% payout ratio. The forecast comprises ¥45 at the interim and ¥45 at year-end, and the interim payment is due from November 11. The prior year's ¥100 included a ¥10 commemorative payout.