Trial Holdings (141A) Q1 2025 earnings summary

Executive summary

• Sales increased 10.5% year-over-year to JPY195.8 billion, with same-store sales up 4.4% and gross profit up 12.0%, despite a planned 11.2% decline in operating profit due to upfront costs for new store openings.

• Net sales for the three months ended September 30, 2024, reached ¥195,834 million, with operating profit at ¥4,931 million and profit attributable to owners of parent at ¥3,160 million.

• Nine new stores were opened in Q1, bringing the total to 327, and the company remains on track with its full-year store opening and renovation plans.

• Comprehensive income for the quarter was ¥3,016 million, with ¥2,922 million attributable to owners of parent.

Financial highlights

• Q1 sales reached JPY195.8 billion (+10.5% YoY), gross profit JPY39.1 billion (+12.0% YoY), and operating profit JPY4.9 billion (−11.2% YoY).

• Net income attributable to owners was JPY3.16 billion, down 2.8% YoY.

• Ordinary profit totaled ¥5,266 million, and basic earnings per share were ¥25.91.

• SG&A expenses rose 16.1% YoY, mainly due to new store openings and higher electricity costs.

• Free cash flow was negative at JPY−29.4 billion, reflecting active investment in store expansion.

Outlook and guidance

• No revision to the full-year forecast: sales expected at JPY808.9 billion (+12.7% YoY), operating income JPY23.0 billion (+20.0% YoY), and net income JPY13.8 billion (+20.3% YoY).

• Operating profit is projected at ¥23,810 million, with profit attributable to owners of parent at ¥13,756 million and EPS of ¥112.46.

• Q2 is forecasted to be stronger than Q1, with progress toward 1H guidance below 50% but Q1 results beating plan.

• No revisions to previously announced earnings or dividend forecasts.