Saizeriya, the popular Japanese restaurant operator, saw a significant increase in its shares on Thursday morning as its nine-month operating profit more than tripled. This boost can be attributed to a strong recovery from the pandemic and the successful opening of new stores in China.
The company’s shares rose by as much as 16% earlier in the day and were recently trading 14% higher at 4,105 yen.
According to Saizeriya’s announcement after the market closed on Wednesday, its operating profit for the nine months ended in May skyrocketed to Y3.57 billion ($25.8 million), a remarkable improvement from Y1.06 billion in the same period last year.
The company’s Asia operations, excluding Japan, experienced a substantial increase in operating profit of 62% to Y4.96 billion. This growth can be attributed, in part, to successful new store openings in cities like Guangzhou and Shanghai.
However, Saizeriya’s operations in Japan suffered a loss due to rising energy and food ingredient costs, despite an increase in the number of customers following the easing of Covid-19-related restrictions.
While the nine-month net profit declined by 60% to Y2.66 billion due to reduced government subsidies related to the pandemic, revenue increased by an impressive 23% to Y132.10 billion.
Saizeriya has maintained its earnings guidance for the fiscal year ending in August, expecting revenue to reach Y177.20 billion, a 23% increase, while projecting a net profit decrease of 26% to Y4.20 billion.