NATTY SWANKY holdings CO.,Ltd.

Business Details

A food and beverage business built on the concept of "making gyoza and beer part of Japanese culture," operating multiple "Nikujiru Gyoza no DANDADAN" (juicy gyoza) branded stores through both directly-operated and franchise formats. Its strengths lie in product development specialized in gyoza, uniform quality achieved through proprietary manufacturing methods, and "stylish and dashing" customer service. The customer base spans a wide range of genders and generations, characterized by purpose-driven visits (gyoza paired with beer). The group has a gyoza manufacturing subsidiary, GRIP FACTORY Co., Ltd., which also handles stable supply of gyoza to franchise stores. As the group operates a single segment—the Food & Beverage Business—segment-by-segment disclosure has been omitted.

Recent Overview

In Q1 of FY2027 (ending January 2027), net sales grew 3.9% and operating profit turned positive, marking a significant improvement

For the first quarter of FY2027 (ending January 2027) (February to April 2026), net sales were ¥1,924 million (+3.9% year on year), and operating profit was ¥34 million, turning positive from a loss of ¥85 million in the same period of the prior year. The main factor was a ¥67 million year-on-year decrease in selling, general and administrative expenses. The company implemented price revisions on some products, renewed its main menu, and expanded photo listings. It also launched sales of a gyoza set for children, ran a limited-time Jim Beam highball campaign, and offered a limited-quantity collaboration product with "Tenkaippin" (rich-soup clay pot juicy gyoza), among other buzz-generating initiatives. There were no new store openings in the current first quarter. Net loss was ¥15 million, a significant improvement from a loss of ¥93 million in the same period of the prior year. There has been no change to the earnings forecast from the figures announced on March 13, 2026.

Key Products

Growth Drivers

• Steady trend in dining-out demand supported by progress in wage increases and recovery in inbound tourism demand
• Improved customer satisfaction and average spend per customer through main menu renewal, expanded photo listings, and new product introductions
• Creation of new usage occasions by offering gyoza sets for children aimed at attracting family customers
• Generation of buzz and increased customer traffic and brand recognition through collaboration products and limited-time campaigns
• Improved profit structure through price revisions on some products
• Expansion of contract manufacturing orders for external customers by GRIP FACTORY (new revenue source)
• Improved profitability through more efficient selling, general and administrative expenses (down ¥67 million year on year)

Risks

• Rising cost of sales ratio due to persistently high raw material and energy costs (Q1 cost of sales: ¥599 million)
• Continued increases in labor and recruitment costs (including the impact of the suspension of new intake of Specified Skilled Worker (i) foreign nationals in the dining-out sector)
• Rising raw material prices due to the continuing yen depreciation trend
• Risk of impairment losses on unprofitable stores
• Risk of additional tax expense due to reduced recoverability of deferred tax assets (against Q1 profit before income taxes of ¥37 million, income taxes of ¥53 million were recorded)
• Continuation of accumulated deficit in retained earnings (-¥1,011 million as of Q1 end)
• Financial burden from increased short-term borrowings (+¥45 million versus the end of the prior fiscal year)
• Limited scope for expanding sales scale during the period when new store openings are suspended