Seven & i Holdings (3382) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 saw revenue growth of 3.2% year-over-year to ¥2,734.7 billion, but operating income fell 27.6% to ¥59.3 billion and net income dropped 49.3% to ¥21.3 billion, with results generally in line with plan.

• Main business drivers, Japan and U.S. convenience store segments, underperformed due to changing consumer behavior, inflation, and high interest rates.

• Strategic initiatives included the acquisition of Sunoco Stripes and 7-Eleven Australia, and the sale of Nissen Holdings.

• Progress made on initiatives to increase customer numbers and transform operations in domestic and overseas convenience store businesses.

• Comprehensive income surged 218.7% year-over-year to ¥204,478 million, mainly due to foreign currency translation adjustments.

Financial highlights

• Group total sales, including franchisees, rose 3.0% year-over-year to ¥4,288.5 billion; revenues from operations reached ¥2,734.7 billion (+3.2% YoY).

• Operating income was ¥59.3 billion, down ¥22.6 billion year-over-year and 1.7% below plan.

• Net income attributable to owners was ¥21.3 billion, down ¥20.7 billion year-over-year but 5.9% above plan.

• EBITDA for the quarter was ¥195.4 billion, down from ¥208.3 billion a year earlier.

• EPS was ¥8.20, down from ¥15.92 year-over-year; EPS before amortization of goodwill was ¥20.33, down from ¥26.58.

Outlook and guidance

• Full-year forecast: revenues from operations ¥11,246.0 billion (+2.0% YoY), operating income ¥545.0 billion (+2.0%), net income ¥293.0 billion (+30.4%), EPS ¥112.80 (+32.9% YoY).

• Segment forecasts: Domestic CVS operating income ¥260.0 billion (+3.6% YoY), Overseas CVS ¥318.7 billion (+7.2% YoY).

• No change to previously announced forecasts; annual dividends per share forecast at ¥40.00 post-share split.

• Measures are being revised to address underperformance, with a focus on recovering customer counts and optimizing pricing.

• Action plans to accelerate growth, restructure the group, and enhance investor engagement are underway, with updates expected in Q2.