Kotobuki Spirits (2222) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter sales and profits, driven by price revisions, inbound demand recovery, and new store openings, despite higher SG&A expenses from rising salaries.

• Opened six new stores and rebranded one, including three at JR Shinjuku Station's EATOLUMINE in April 2024.

• Inbound sales (international airports) reached 2,305 million yen, now including sales outside immigration gates.

Financial highlights

• Net sales rose 12.1% year-over-year to 15,526 million yen; ordinary profit up 11.8% to 3,447 million yen.

• Gross profit margin improved by 1.7 points to 62.6%; net profit increased 9.5% to 2,265 million yen.

• EPS increased from 13.30 to 14.56 yen year-over-year.

• Domestic wholesale and retail sales grew 17.9% and 10.0% respectively; overseas sales declined 21.9%.

• SG&A expenses rose 16.9% year-over-year, mainly from higher personnel and promotion costs.

Outlook and guidance

• FY2025 forecast: net sales 70,000 million yen (+9.3% YoY), operating profit 17,530 million yen (+11.1% YoY), net profit 11,800 million yen (+8.9% YoY).

• Dividend per share forecast maintained at 28 yen.

• CAPEX planned at 3,500 million yen, up from 1,926 million yen in FY2024, with new factory operations starting August 2024.