Eat and Holdings Co., Ltd. <2882> is mainly engaged in the manufacturing and sales of frozen foods focusing on Chinese side dishes, as well as the chain expansion of the dining-out business focusing on daily meals. The company has two business segments, in the dining-out business, they expand major brands such as the popular Chinese cuisine format of "Osaka Ohsho" domestically and internationally, and also operate bakery and cafe formats. In the food business, they aim to increase the brand awareness of the "Osaka Ohsho" brand and utilize it for secondary purposes by selling "Osaka Ohsho" brand frozen foods through wholesalers to nationwide consumer cooperative associations and general retailers. By promoting a dual-wheel management of the dining-out business and the food business, the company leverages economies of scale, enhances mutual brand awareness, and these become strengths in the company's business operation.

For the second quarter of the consolidated performance in the fiscal period ending February 2025, revenue increased by 1.1% year-on-year to 17,951 million yen, and operating profit increased by 7.4% to 668 million yen. Due to the decrease in the number of manufacturing lines following a fire at the Kanto No. 1 Factory, the production volume fell below expectations. The food business struggled with a decline in revenue and profit, but the dining-out business performed well with increased revenue and profit, which lifted the overall performance. In the dining-out business, profits accumulated mainly centered on the flagship Osaka Ohsho, segment profit sharply increased by 117.7% year-on-year to 339 million yen. Contributing factors to the improvement in profitability include ensuring that the price increases in raw materials and labor costs are reflected in the selling prices, as well as the stable operation of central kitchens.

The consolidated performance forecast for the fiscal period ending February 2025 anticipates a revenue increase of 8.8% year-on-year to 39,100 million yen and an operating profit increase of 20.8% to 1280 million yen. Regarding the food business, they plan to focus on expanding production and sales of water dumplings towards the end of the year. The production volume of the factory affected by the fire, which had been stagnant, is recovering. They aim to promote a decrease in unit costs through production volume expansion and focus on accumulating profits. Additionally, price increases have been implemented, expected to be a profit-increasing factor. In the dining-out business, they are heading towards the busy year-end season. Amidst this, they plan to expand performance by focusing on steady growth in existing store sales and expanding the store network through new store openings. They aim to increase the total store count from 451 stores at the end of August 2024 to 470 stores by the end of the period.

As a medium to long-term strategy, the company aims to further deepen the synergy between its core businesses, the food business and the dining-out business, and promote the creation of new businesses to pursue business expansion and enhancement of corporate value. By expanding production capacity and promoting efficiency through smart factory transformation, utilizing M&A and alliances for creating new businesses and strengthening existing businesses, the company plans to achieve a revenue goal of 50,000 million yen, operating profit of 2,500 million yen, operating margin of 5%, ROE of 8%, EPS of 100 yen, and a total of 650 dining-out business locations (550 domestic, 100 overseas) by the end of the fiscal year 2026.