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Financial Results Presentation3382Seven & i Holdings Co.,Ltd.Retail

Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027

First-quarter operating profit was ¥105.0 billion, substantially above plan, and increased year on year, driven primarily by the overseas convenience store business. In response, the company revised its earnings forecasts for the interim period and full year upward, although its full-year forecast for profit attributable to owners of the parent is below the previous fiscal year's actual result.

Worth reading
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
200
¥100 million (revision to the full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending February 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥23,788 100 million +85.7%operating revenue
Operating profit1,050 Hundreds of millions of yen+161.4%
Ordinary income1,007 Hundreds of millions of yen+189.1%
Net income¥606 100 million +123.6%quarterly net income attributable to owners of the parent
Gross Profit Margin
SEJ32.0%, +0.3 percentage points year on year
SEI33.2%, ±0.0 percentage points year on year
Selling, general and administrative expenses
SEJ
1,636 Hundreds of millions of yen
SEI
2,310 USD million
Results for the three months of the current quarter
Operating revenue
23,788 Hundreds of millions of yen
Operating profit
1,050 Hundreds of millions of yen
Ordinary income
1,007 Hundreds of millions of yen
Profit attributable to owners of parent for the quarter
606 Hundreds of millions of yen
EBITDA
2,332 Hundreds of millions of yen
Full-year earnings forecast
Group convenience store merchandise sales
102,100 Hundreds of millions of yen
Operating revenue
104,300 Hundreds of millions of yen
Operating profit
4,250 Hundreds of millions of yen
Ordinary income
3,900 Hundreds of millions of yen
Profit attributable to owners of the parent
2,780 Hundreds of millions of yen
EBITDA
9,280 Hundreds of millions of yen
EPS
¥120.89
EPS before goodwill amortization
¥168.4
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Key initiatives are generally progressing as planned / Key initiatives are generally making steady progress
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profit versus prior year
Domestic CVS+¥56.9 billion
International CVS+¥3.3 billion
Other-¥120 million
Eliminations and Corporate+¥57.8 billion (total)
Consolidated operating profit versus plan
Domestic CVS+¥40.3 billion
International CVS+¥1.2 billion
Other+¥1.6 billion
Eliminations and Corporate+¥44.0 billion (total)
SEJ operating profit
Revenue and other factors+¥4.9 billion
Gross margin+¥1.7 billion
Selling, general and administrative expenses−¥8.8 billion
Total(¥2.0 billion)
SEI operating profit
Products and other+¥53.3 billion
Gasoline+¥2.4 billion
Selling, general and administrative expenses, etc.−¥4.5 billion
Foreign Exchange−¥0.69 billion
Total+¥50.6 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • First-half exchange rate (US dollar)¥158.00
  • Full-year exchange rate (US dollar)¥157.00
  • Chinese yuan exchange rate¥23.00
New initiatives
  • Development of a new contract type. The company aims to increase the number of stores by approximately 1,000 on a net basis by fiscal 2030, with contracts scheduled to begin around autumn 2027
  • Establishment of the new retail media company Seven-Eleven AdConnect. Revenue target of ¥20 billion for fiscal 2030
  • Launch of 7NOW mobile ordering
  • SEI closures of unprofitable stores, conversion to gasoline wholesale operations, store renovations, and expansion of new private-label products
Key KPIsA metric the company considers important as a management benchmark.
  • SEJ same-store sales growth+2.0%
  • SEJ merchandise gross margin32.0 %
    Year on year against the same period last year+0.3 percentage points
  • SEI same-store sales growth+1.4 %
  • SEI merchandise gross margin33.2 %
    Year on year against the same period last year±0.0 percentage points
  • Franchisee profit (monthly)
    Year on year against the same period last year101.9%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Growth in average daily sales of freshly prepared counter products+14.7 %
  • Growth in average daily sales of toys+26.5 %
  • Growth in total gasoline sales volume (SEI)▲4.8
Segment results
Domestic convenience stores
Operating revenue
2,301 Hundreds of millions of yen+103.0%
Operating profit
522 Hundreds of millions of yen+95.8%
EBITDA
761 Hundreds of millions of yen+99.4%
Overseas convenience stores
Operating revenue
21,358 Hundreds of millions of yen+102.0%
Operating profit
655 Hundreds of millions of yen+755.0%
EBITDA
1,605 Hundreds of millions of yen+160.5%
Other
Operating revenue
162 Hundreds of millions of yen+3.5%
Operating profit
15 Hundreds of millions of yen+7.7%
EBITDA
55 Hundreds of millions of yen+13.3%
Number of stores and locations
SEJ
New Store Openings98 stores
Net additions13 stores
SEI
Number of restaurants opened20 stores
New Store Openings30 stores
Conversion to franchises43 stores converted to franchises
Closure of unprofitable stores45 stores
Conversion to gasoline wholesale operations72 stores converted to gasoline wholesale operations
Capital expenditures
¥12 100 million first-quarter investment by eliminations and corporate
Acquisition of treasury shares
The EPS forecast reflects the expected impact of share repurchases. The repurchase authorization amount, number of shares and period are Not disclosed
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending February 2027
Net Sales¥23,788 100 million (operating revenue) (YoY +85.7%)
Operating profit1,050 Hundreds of millions of yen (YoY +161.4%)
Ordinary income1,007 Hundreds of millions of yen (YoY +189.1%)
Net income¥606 100 million (quarterly net income attributable to owners of the parent) (YoY +123.6%)
Gross Profit MarginSEJ 32.0%, +0.3 percentage points year on year / SEI 33.2%, ±0.0 percentage points year on year
Selling, general and administrative expensesSEJ 1,636 Hundreds of millions of yen / SEI 2,310 USD million
Results for the three months of the current quarterOperating revenue 23,788 Hundreds of millions of yen / Operating profit 1,050 Hundreds of millions of yen / Ordinary income 1,007 Hundreds of millions of yen / Profit attributable to owners of parent for the quarter 606 Hundreds of millions of yen / EBITDA 2,332 Hundreds of millions of yen
Full-year earnings forecastGroup convenience store merchandise sales 102,100 Hundreds of millions of yen / Operating revenue 104,300 Hundreds of millions of yen / Operating profit 4,250 Hundreds of millions of yen / Ordinary income 3,900 Hundreds of millions of yen / Profit attributable to owners of the parent 2,780 Hundreds of millions of yen / EBITDA 9,280 Hundreds of millions of yen / EPS ¥120.89 / EPS before goodwill amortization ¥168.4
Self-assessment against the planKey initiatives are generally progressing as planned / Key initiatives are generally making steady progress
Segment resultsDomestic convenience stores Operating revenue 2,301 Hundreds of millions of yen (YoY +103.0%) / Operating profit 522 Hundreds of millions of yen (YoY +95.8%) / EBITDA 761 Hundreds of millions of yen (YoY +99.4%) / Overseas convenience stores Operating revenue 21,358 Hundreds of millions of yen (YoY +102.0%) / Operating profit 655 Hundreds of millions of yen (YoY +755.0%) / EBITDA 1,605 Hundreds of millions of yen (YoY +160.5%) / Other Operating revenue 162 Hundreds of millions of yen (YoY +3.5%) / Operating profit 15 Hundreds of millions of yen (YoY +7.7%) / EBITDA 55 Hundreds of millions of yen (YoY +13.3%)
Breakdown of Factors Affecting the ChangeConsolidated operating profit versus prior year Domestic CVS +¥56.9 billion / International CVS +¥3.3 billion / Other -¥120 million / Eliminations and Corporate +¥57.8 billion (total) / Consolidated operating profit versus plan Domestic CVS +¥40.3 billion / International CVS +¥1.2 billion / Other +¥1.6 billion / Eliminations and Corporate +¥44.0 billion (total) / SEJ operating profit Revenue and other factors +¥4.9 billion / Gross margin +¥1.7 billion / Selling, general and administrative expenses −¥8.8 billion / Total (¥2.0 billion) / SEI operating profit Products and other +¥53.3 billion / Gasoline +¥2.4 billion / Selling, general and administrative expenses, etc. −¥4.5 billion / Foreign Exchange −¥0.69 billion / Total +¥50.6 billion
Key KPIsIndicator name SEJ same-store sales growth / Value +2.0% / Year on year against the same period last year Not disclosed, Indicator name SEJ merchandise gross margin / Value 32.0 % / Year on year against the same period last year +0.3 percentage points, Indicator name SEI same-store sales growth / Value +1.4 % / Year on year against the same period last year Not disclosed, Indicator name SEI merchandise gross margin / Value 33.2 % / Year on year against the same period last year ±0.0 percentage points, Indicator name Franchisee profit (monthly) / Value Not disclosed / Year on year against the same period last year 101.9%
Unit price and quantity metricsIndicator name Growth in average daily sales of freshly prepared counter products / Value +14.7 % / Year on year against the same period last year Not disclosed, Indicator name Growth in average daily sales of toys / Value +26.5 % / Year on year against the same period last year Not disclosed, Indicator name Growth in total gasoline sales volume (SEI) / Value ▲4.8 / Year on year against the same period last year Not disclosed
Number of stores and locationsSEJ New Store Openings 98 stores / Net additions 13 stores / SEI Number of restaurants opened 20 stores / New Store Openings 30 stores / Conversion to franchises 43 stores converted to franchises / Closure of unprofitable stores 45 stores / Conversion to gasoline wholesale operations 72 stores converted to gasoline wholesale operations
Assumptions Underlying the Business OutlookItem First-half exchange rate (US dollar) / Value ¥158.00, Item Full-year exchange rate (US dollar) / Value ¥157.00, Item Chinese yuan exchange rate / Value ¥23.00
Acquisition of treasury sharesThe EPS forecast reflects the expected impact of share repurchases. The repurchase authorization amount, number of shares and period are Not disclosed
Capital expenditures¥12 100 million (first-quarter investment by eliminations and corporate)
New initiativesDevelopment of a new contract type. The company aims to increase the number of stores by approximately 1,000 on a net basis by fiscal 2030, with contracts scheduled to begin around autumn 2027, Establishment of the new retail media company Seven-Eleven AdConnect. Revenue target of ¥20 billion for fiscal 2030, Launch of 7NOW mobile ordering, SEI closures of unprofitable stores, conversion to gasoline wholesale operations, store renovations, and expansion of new private-label products
Items this document does not state (11)
Operating profit marginProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In addition to the first quarter's better-than-expected results, progress was made in Japan on collaborative marketing and differentiation of fresh food products, and overseas on strengthening the product lineup, initiatives to improve customer loyalty, and optimization of the store network. Regarding the full-year forecast revision, the company explained that SEI is expected to improve merchandise sales and gross margin through an accelerated strengthening of its product lineup and aggressive initiatives to improve customer loyalty.

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Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027 | Seven & i Holdings Co.,Ltd. (3382) timely disclosure | Komori