Trial Holdings (141A) Q1 2026 earnings summary

Executive summary

• Net sales rose 66.8% YoY to ¥326.6bn, driven by the full acquisition of SEIYU and new store openings, with EBITDA up 186% YoY to ¥14.7bn and operating profit up 4.2% to ¥5.1bn.

• Profit attributable to owners of parent was a loss of ¥979m, compared to a profit of ¥3,160m in the prior year, and comprehensive income was negative ¥708m.

• Gross profit margin improved by 3.4pts YoY to 23.4%, reflecting pricing strategy and product mix enhancements.

• Integration of SEIYU progressing smoothly, with joint campaigns and product rollouts supporting sales and customer traffic.

• Five companies, including Seiyu Co., Ltd., were newly consolidated during the period.

Financial highlights

• Net sales: ¥326.6bn (+66.8% YoY); Gross profit: ¥76.5bn (+95.6% YoY); Operating profit: ¥5.1bn (+4.2% YoY); EBITDA: ¥14.7bn (+186% YoY); Operating profit margin: 1.6%.

• Ordinary profit decreased to ¥3,247m from ¥5,266m YoY; basic EPS was negative ¥8.01, compared to ¥23.32 in the prior year.

• One-off M&A costs: advisory fees (¥2.0bn), structuring fees (¥1.2bn), goodwill amortization (¥3.8bn).

• Net income impacted by higher tax rate and one-time expenses, but progress remains on track for 1H forecast.

Outlook and guidance

• No revision to FY2026 consolidated forecast: net sales ¥1,322.5bn, operating profit ¥25.4bn, EBITDA ¥66.3bn; profit attributable to owners of parent expected to be ¥500m, a 95.7% decrease.

• Synergy effects from SEIYU integration to be detailed in Q2; focus on sustainable growth and profitability.

• Continued aggressive store expansion, pricing optimization, and product development to drive growth.