The financial trajectory over the analyzed period is characterized by a significant period of volatility during 2020, followed by a recovery phase and a subsequent trend of margin compression from 2023 through early 2026. Revenue streams remain predominantly driven by company-operated stores, though the relative contribution of licensed stores has seen a gradual increase.
Revenue Stream Composition
Company-operated stores consistently contribute the majority of net revenues, fluctuating between 79% and 85%. Licensed stores experienced a notable dip to 7.12% in June 2020 before trending upward to peak at 12.85% in January 2023, suggesting a strategic shift or a change in the revenue mix toward licensed models. Other revenue sources have generally declined from a peak of 11.30% in mid-2020 to approximately 6.58% by March 2026.
Gross Profitability and Cost Structure
Gross profit margins exhibited extreme volatility during the 2020 fiscal year, reaching a low of 4.74% in June 2020 due to a surge in store operating expenses, which spiked to 60.11% of net revenues. While margins recovered to a peak of 31.00% in June 2021, a sustained downward trend is observable from 2024 onward, with gross profit falling to 20.08% by March 2026. This erosion is primarily driven by the simultaneous increase in product and distribution costs, rising from 30.07% in June 2024 to 33.66% in March 2026, and store operating expenses, which rose from 42.01% to 46.25% in the same period.
Operating Expense Analysis
General and administrative expenses have remained relatively stable, typically ranging between 6% and 7.6% of net revenues. Depreciation and amortization expenses showed a slight downward trend, moving from highs of 8.55% in 2020 to 3.81% by March 2026. A significant anomaly occurred in September 2025, where restructuring and impairments reached 7.89% of net revenues, contributing to a sharp temporary decline in operating income.
Operating and Net Income Trends
Operating income shows a clear pattern of contraction in the later stages of the period. After recovering from the 2020 losses to reach 19.86% in June 2021, operating margins declined to 8.69% by March 2026. Net earnings attributable to the company follow a similar trajectory, decreasing from a post-pandemic peak of 21.66% in October 2021 to 5.36% by March 2026. This decline is indicative of increasing operational costs outpacing revenue growth.
Non-Operating Items and Tax Impact
Interest expenses have remained consistent, generally hovering between 1.35% and 1.65% of net revenues. Income tax expenses as a percentage of revenue have fluctuated but generally trended downward in the most recent quarters, reflecting the lower taxable income resulting from compressed operating margins.
