Kobe Bussan (3038) Q4 2024 earnings summary

Executive summary

• Net sales rose 10.0% year-over-year to ¥507,883 million, driven by robust new store openings and strong product shipments at existing stores.

• Operating profit increased 11.8% year-over-year to ¥34,350 million, with operating margin improving to 6.8%.

• Profit attributable to owners of parent grew 4.3% year-over-year to ¥21,443 million.

• Gyomu Super, the core business, expanded to 1,084 stores, exceeding the annual net increase target.

Financial highlights

• Gross profit increased 10.8% year-over-year to ¥58,413 million, with gross margin at 11.5%.

• SG&A expenses rose 9.4% year-over-year, but the SG&A ratio improved to 4.7%.

• Ordinary profit rose 5.4% year-over-year to ¥31,576 million, aided by improved forward exchange contract valuations.

• Total assets reached ¥233,392 million, with an equity ratio of 55.4%.

Outlook and guidance

• FY2025 forecast: net sales of ¥525,000 million (+3.4%), operating profit of ¥37,700 million (+9.8%), and profit attributable to owners of parent of ¥24,000 million (+11.9%).

• Plans to open a net 34 new Gyomu Super stores and target 1–2% growth in existing store sales.

• Medium-term plan aims for net sales of ¥562,000 million and operating profit of ¥41,000 million by FY2026.

• Long-term vision includes expanding Gyomu Super to over 1,500 stores and raising the PB ratio to 40% or higher.