Pepper Food Service Swings to Loss Despite Rising Revenue

Deteriorating Margins and Earnings

The company’s revenue climbed to 14.55 billion yen from 13.99 billion yen in 2024, representing a modest year-on-year growth. However, this increase was offset by a significant decline in profitability. Operating profit dropped to 42 million yen, down from 76 million yen, while pretax profit saw a steeper decline, falling to 44 million yen from 103 million yen in the previous period.

The swing to a net loss resulted in a loss per share of 1.89 yen, contrasted with earnings per share of 0.49 yen in 2024. These figures, prepared under Japanese accounting standards, underscore the financial headwinds facing the hospitality firm despite higher sales volume.

Key financial highlights for the 2025 fiscal year include:

• A net loss of 114 million yen compared to a 28 million yen profit in 2024.
• A total revenue increase of approximately 4% year-over-year.
• An operating profit margin contraction to 42 million yen.
• The maintenance of a zero-yen annual dividend.

Pepper Food Service confirmed it will not pay a dividend for the 2025 fiscal year, consistent with its payout policy from the previous year. The company's forecasts for future periods also indicate a continued suspension of dividend payments as it manages its capital recovery.