Royal Holdings announced its financial results for the fiscal year ending December 2024, reporting a record net profit of 5.926 billion yen.
The company recorded sales of 152.15 billion yen, an operating profit of 7.366 billion yen, and ordinary profit of 7.315 billion yen. The year-end dividend was a substantial increase to 32 yen.
The sustained demand in the food service and accommodation sectors, along with price increases due to the high-value-added strategy, led to increased revenue in existing outlets. New store openings also contributed. The surge in procurement prices had a 900 million yen impact compared to 2021. While the sharp increase in U.S.-sourced beef prices stabilized, there was a rise in vegetable and egg prices from the third quarter due to rice price increases and the heatwave.
The hotel’s sales were 35.072 billion yen, with an ordinary profit of 5.424 billion yen, surpassing the food service and contract businesses within segments. Inbound demand was strong, especially in the fourth quarter. The occupancy rate was 80.5%, with an annual inbound ratio of 21%, rising to 26% in the fourth quarter.
For the fiscal year ending December 2025, the company forecasts sales of 166.6 billion yen, operating profit of 7.8 billion yen, ordinary profit of 7.8 billion yen, and net profit of 4.85 billion yen, while maintaining dividends.
The hotel division plans to refurbish rooms and common areas in three properties and revamp breakfast venues in four locations to promote its high-value-added strategy.
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