MatsukiyoCocokara & Co (3088) Q4 2025 earnings summary

Executive summary

• Net sales rose 3.8% year-over-year to ¥1,061.6 billion, with operating profit up 8.4% to ¥82.1 billion and profit attributable to owners up 4.4% to ¥54.7 billion, driven by strong cosmetics, duty-free sales, and digital initiatives.

• Profitability improved through expense control, higher gross margin, and effective seasonal product strategies, despite upfront investments in human capital and systems.

• Store network expanded to 3,499 in Japan and 79 overseas, with notable brand recognition and health management accolades.

Financial highlights

• Gross profit up 5.1% to ¥372.2 billion; operating profit margin reached 7.7%; EBITDA up 7.5% to ¥104.7 billion.

• Free cash flow reached ¥60.6 billion, up ¥19.9 billion year-over-year; cash flows from operating activities grew to ¥81.5 billion.

• Dividend payout ratio increased to 32.9%, with annual dividend per share at ¥44.00 post-split.

Outlook and guidance

• FY2025 net sales forecasted at ¥1,100 billion, up 3.6% year-over-year; operating profit projected at ¥85.5 billion, up 4.2%.

• Annual dividend for FY2025 planned at ¥46 per share, up ¥2 from FY2024.

• Medium-term plan targets ¥1.5 trillion net sales and 12%+ ROE by FY2031, with a 50% dividend payout ratio.

• Store openings to be carefully managed amid rising costs, with 130 new stores and 90 closures planned for FY2025.

• Focus on differentiation, investment in digital and human capital, and sustainable management.