Kobe Bussan (3038) Q3 2025 earnings summary

Executive summary

• Net sales rose 9.1% year-over-year to ¥411.6 billion, driven by robust new store openings, strong product shipments, and effective pricing strategies.

• Operating profit increased 13.9% year-over-year to ¥30.3 billion, with gross profit up 12.4% due to lower purchase costs from yen appreciation.

• Ordinary profit surged 74.0% year-over-year, aided by mark-to-market gains on forward exchange contracts.

• Profit attributable to owners of parent jumped 76.5% year-over-year to ¥26.2 billion.

• The business environment was marked by moderate economic recovery in Japan, but with ongoing cost pressures and consumer savings orientation due to inflation.

Financial highlights

• Gross margin improved to 12.0% from 11.7% year-over-year.

• SG&A expenses increased 10.1% year-over-year, mainly due to higher freight, personnel, and rent costs.

• Operating margin rose to 7.4% from 7.1% year-over-year.

• Ordinary profit reached ¥38,249 million, and comprehensive income increased 71.6% to ¥26,084 million.

• Total assets as of July 31, 2025, were ¥247.6 billion, with an equity ratio of 61.0%.

Outlook and guidance

• Full-year net sales forecast is ¥525 billion, with 78.4% progress as of Q3.

• Operating profit forecast is ¥37.7 billion (80.5% progress), and profit attributable to owners of parent is ¥24 billion (109.2% progress).

• Annual dividend forecast is ¥26.00 per share.

• Plans to open a net increase of 34 Gyomu Super stores, focusing on the Kanto area.

• Targeting 101-102% year-over-year growth in existing store sales and a higher private label product ratio.