Trial Holdings (141A) Q2 2025 earnings summary

Executive summary

• 1H FY2025 sales rose 11.1% YoY to JPY 403.7Bn, driven by 3.9% same-store sales growth and 20 new store openings.

• Operating profit declined 16.1% YoY to JPY 9.7Bn due to a 17.1% rise in SG&A from upfront costs for new stores and higher labor and utility expenses.

• Net income attributable to owners fell 11.7% YoY to JPY 6.13Bn; comprehensive income was JPY 6.17Bn, down 13.4%.

• Ordinary profit decreased 11.3% YoY to JPY 10.62Bn.

• Store count reached 338, with 245 stores equipped with Skip Cart technology.

Financial highlights

• Q2 FY2025 sales were JPY 207.9Bn (+11.8% YoY), gross profit JPY 41.0Bn (+11.8% YoY), and operating income JPY 4.77Bn (-20.7% YoY).

• Gross profit increased to JPY 80.1Bn from JPY 71.6Bn YoY; SG&A expenses rose to JPY 71.7Bn from JPY 61.2Bn.

• Free cash flow for 1H was JPY 9.44Bn, down 78% YoY due to timing of payables settlement.

• Cash and cash equivalents at period end were JPY 97.7Bn, up from JPY 91.9Bn at the start.

• Basic earnings per share was JPY 50.27, down from JPY 71.35 YoY.

Outlook and guidance

• Full-year FY2025 sales forecast unchanged at JPY 808.9Bn (+12.7% YoY), with operating income projected at JPY 23.0Bn (+20.0% YoY).

• Profit attributable to owners forecast at JPY 13.76Bn (+20.3% YoY).

• Plan to open 35 new stores in FY2025, up 8 from initial plan, with renovation activity deferred in 2H.

• SSS growth target for full year is 3.6%.

• Annual dividend forecast is JPY 16.00 per share.