Kobe Bussan (3038) Q1 2025 earnings summary

Executive summary

• Net sales rose 9.5% year-over-year to ¥132,425 million, driven by robust new store openings, strong shipments to existing stores, and effective pricing strategies.

• Operating profit increased 7.3% year-over-year to ¥9,154 million, and profit attributable to owners of parent grew 91.7% to ¥10,588 million.

• Ordinary profit surged 92.3% year-over-year due to the absence of forward exchange contract losses.

• Growth was supported by consumer thriftiness and strong private label product performance amid challenging economic conditions.

Financial highlights

• Gross profit reached ¥15,315 million, up 7.6% year-over-year, with a gross margin of 11.6%.

• SG&A expenses rose 8.1% year-over-year, mainly from higher freight and personnel costs, but the SG&A ratio remained at 4.7%.

• Net assets increased to ¥138,692 million, with an equity ratio of 58.8%.

• Basic earnings per share rose to ¥47.86 from ¥25.03 year-over-year.

• Total assets decreased to ¥229,805 million, while net assets increased as of January 31, 2025.

Outlook and guidance

• FY2025 full-year net sales forecast is ¥525,000 million, with 25.2% achieved in Q1.

• Operating profit forecast is ¥37,700 million (24.3% achieved), and profit attributable to owners of parent is ¥24,000 million (44.1% achieved).

• Dividend forecast for FY2025 is ¥26.00 per share, up from ¥23.00 in FY2024.

• Plans include a net increase of 34 Gyomu Super stores and 101-102% YoY growth in existing store sales.

• Full-year guidance remains unchanged despite industry headwinds.