Kobe Bussan (3038) investor relations material

Executive summary

• Net sales rose 6.9% year-over-year to ¥141,598 million, with operating profit up 19.6% to ¥10,945 million, but ordinary profit and net income declined sharply due to a valuation loss on forward exchange contracts from yen appreciation and lower ordinary profit.

• The business environment was marked by moderate economic recovery in Japan, but persistent inflation, volatile exchange rates, and rising energy costs pressured margins and consumer behavior.

Financial highlights

• Net sales: ¥141,598 million (+6.9% YoY); gross profit: ¥17,820 million (+16.4% YoY); operating profit: ¥10,945 million (+19.6% YoY).

• Ordinary profit: ¥8,764 million (–43.5% YoY); profit attributable to owners: ¥5,910 million (–44.2% YoY); basic EPS: ¥26.66 (down from ¥47.86 YoY).

• Gross margin improved to 12.6%; operating margin rose to 7.7%; net margin fell to 4.2%.

• SG&A expenses increased 11.6% year-over-year, mainly from higher freight, rent, and personnel costs.

• Total assets reached ¥248,075 million; equity ratio at 58.8%; net assets per share at ¥708.32.

Outlook and guidance

• FY2026 full-year forecast: net sales ¥566,500 million, operating profit ¥43,000 million, net income ¥29,500 million; no revisions to earnings or dividend forecasts.

• Q1 progress: 25.0% of sales and 25.5% of operating profit targets achieved.

• Plans to open a net 32 new Gyomu Super stores, focusing on the Kanto area, and target 102%+ YoY growth in existing store sales.

• Continued emphasis on private label product development and attracting savings-oriented consumers.