Daiichi Faces Profit Decline While Via HD Reports Modest Profit Increase in Q2 2025

2025-08-12 general

Tokyo, Tuesday, 12 August 2025.
Daiichi’s profit post-tax fell 26% amid rising costs, while Via HD’s profit rose 1% due to strategic menu updates and product quality improvements, reflecting diverse challenges in Japan’s sectors.

Daiichi’s Financial Struggles Attributed to Rising Costs

Daiichi reported a 26% decline in profit after tax for the quarter ending June 30, 2025, resulting in a net income of 8.32 billion yen. This decrease is primarily due to increased procurement costs and heightened administrative expenses, factors that have significantly impacted the company’s profitability. Despite these setbacks, Daiichi’s sales experienced a 12% increase reaching 43.4 billion yen, largely driven by the successful opening of a new store in March 2025 in Sapporo. The new store’s contribution was notable as it topped monthly sales among all Daiichi stores post its opening [1][2].

In contrast to Daiichi, Via HD, operating the ‘Yakitori no Oginya’ izakaya chain, managed a 1% increase in net profit, totaling 460 million yen for the period. This minimal profit uptick was achieved through strategic menu revisions that improved product quality and increased customer spend per visit. However, despite these gains, Via Holdings faced an 86% drop in operating profit due to rising logistics and raw material costs. The company’s strategy to adjust menu pricing mitigated the impact of reduced customer numbers, maintaining stable revenue levels [3][4].

Challenges and Strategies Amid Diverse Economic Conditions

The financial outcomes of Daiichi and Via Holdings underscore the varied challenges faced by firms in Japan’s hospitality and retail sectors. Daiichi’s struggle with operating profits, down 37% compared to the same period last year, highlights the burden of increased opening costs and labor expenses, which contributed to the lower profitability despite higher sales. Meanwhile, Via HD’s minor profit increase exemplifies successful adaptive strategies in response to cost pressures, illustrating divergent paths of addressing economic challenges within the industry [1][3][4].

Future Outlook and Strategic Plans

As both companies gear up to combat the financial pressures of rising costs, their future strategies will be crucial in determining their trajectories. Daiichi is expected to focus on minimizing costs associated with new store openings and administration to bolster its declining profits. On the other hand, Via HD is likely to further refine its menu and pricing strategies to sustain its competitive edge in a challenging market environment. These strategic initiatives will be pivotal in influencing investor confidence and future financial performance, with both companies planning to unveil detailed strategies in the upcoming investor meetings scheduled for 15 August 2025 [5].

Bronnen

Japan financial results