Kobe Bussan (3038) Q4 2025 earnings summary

Executive summary

• Net sales rose 8.6% year-over-year to ¥551.7 billion, with operating profit up 16.1% to ¥39.9 billion and profit attributable to owners of parent up 48.7% to ¥31.9 billion for the fiscal year ended October 31, 2025.

• Growth was driven by robust new store openings, strong shipments to existing stores, and strong performance in the Gyomu Super Business, Restaurant & Delicatessen, and stable Eco Renewable Energy operations.

• Ordinary profit surged 52.3% year-over-year, aided by subsidy income and valuation gains on forward exchange contracts.

• Comprehensive income increased 49.3% to ¥31.9 billion.

Financial highlights

• Gross profit increased 13.8% year-over-year, reflecting effective price pass-through and procurement optimization.

• SG&A expenses rose 10.5% year-over-year, mainly due to higher freight, personnel, and rent costs.

• Cash and cash equivalents at period end were ¥130.5 billion, up ¥23.2 billion from the previous year.

• Dividend per share for FY2025 was ¥30.00, including a ¥4.00 special dividend.

• Net assets reached ¥161.4 billion, with an equity ratio of 52.7%.

Outlook and guidance

• FY2026 guidance: net sales of ¥566.5 billion (+2.7%), operating profit of ¥43.0 billion (+7.8%), ordinary profit of ¥43.7 billion (−9.1%), and profit attributable to owners of parent of ¥29.5 billion (−7.5%).

• Plans to expand Gyomu Super to 1,154 stores (net increase of 32) and continue capital investment in private label and imported products.

• Profit attributable to owners of parent is expected to decrease to ¥29.5 billion (92.5% of FY2025).