Asahi Co (3333) Q1 2025 earnings summary

Executive summary

• Net sales for the three months ended May 20, 2024, rose 3.5% year-over-year to ¥26,934M, driven by strong e-commerce, electric-assist bicycle sales, and increased repair and maintenance orders.

• Operating profit increased 0.6% year-over-year to ¥3,667M, while net profit declined 1.8% to ¥2,486M due to foreign exchange losses.

• E-commerce share increased from 13.7% to 17.0%, reflecting successful OMO and CRM strategies.

• The company expanded its reuse business and opened one new store, bringing the total to 534 stores.

Financial highlights

• Gross profit increased 2.2% year-over-year to ¥12,313M, with a gross margin of 45.7%.

• Operating margin was 13.6%, and net margin was 9.2%.

• SG&A expenses rose 2.9% to ¥8,645M, mainly from higher personnel and advertising costs.

• Basic earnings per share for the quarter were ¥95.35, down from ¥96.96 in the prior year.

• Total assets increased 6.1% to ¥55,768M, and net assets rose 5.2% to ¥38,891M.

Outlook and guidance

• Fiscal year ending Feb. 20, 2025, targets net sales of ¥82,500M (+5.7%), operating profit of ¥5,500M (+12.0%), and net profit of ¥3,680M (+18.2%).

• Basic earnings per share forecast at ¥140.91.

• Dividend forecast for the fiscal year is ¥50.00 per share.

• E-commerce share is expected to reach 14.0%, with continued focus on OMO and CRM integration.

• Market share is projected to rise to 25%.