Royal Holdings KK

Latest Results (20.08.2024):

Revenue Growth

In the first quarter of fiscal 2023, Royal Holdings KK reported a significant improvement in revenue compared to the same period in fiscal 2022. The company achieved net sales that were only ¥1.8 billion lower than the pre-pandemic first quarter of fiscal 2019, indicating a strong recovery trajectory.

Profit Increase

Royal Holdings KK's profits in the first quarter of fiscal 2023 were ¥680 million higher than those in the first quarter of fiscal 2019. This increase is attributed to the company's strategic improvements in its income and expenditure structure, including the closure of unprofitable locations and reduction of fixed expenses.

Shareholders' Equity

At the end of fiscal 2022, Royal Holdings KK's shareholders' equity increased by approximately ¥10.3 billion, reaching around ¥44.2 billion. This growth was driven by the issuance of new shares to Sojitz Corporation and recording a net profit of approximately ¥2.7 billion, among other factors.

Investment Plans

For fiscal 2023, Royal Holdings KK plans to invest ¥9.0 billion, with 60% allocated to existing businesses and 40% toward business creation. The investments will focus on renovating and expanding hotel facilities and establishing joint ventures with Sojitz Corporation for new business operations.

Financial Outlook

Looking ahead to the rest of fiscal 2023, Royal Holdings KK anticipates challenges due to surging prices and geopolitical risks. The company plans to implement price hikes and invest in human capital, which may lead to lower profits compared to fiscal 2022. However, strategic revisions to menus and other countermeasures are expected to mitigate these impacts.