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Results briefing materialsFirst quarter of the fiscal year ending June 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥59,503 million+6.2%
Operating profit¥2,762 million-5.3%
Ordinary income¥2,740 million-7.4%
Net income¥1,878 million-7.8%
Selling, general and administrative expenses¥9,341 million
Gross Profit Margin
Rate20.3%
Year-on-year change (points)+0.1 percentage points year on year
Operating profit margin
Rate4.6%
Year-on-year change (points)-0.6 percentage points
Results for the three months of the current quarterIncludes standalone first-quarter revenue of ¥59,503 million, operating income of ¥2,762 million, ordinary income of ¥2,740 million and quarterly net income of ¥1,878 million, among other figures.
Full-year earnings forecast
Net Sales¥244 billion
Gross Profit¥49.9 billion
Selling, general and administrative expenses¥37.9 billion
Operating profit¥12,000 million
Ordinary income¥12,100 million
Net income for the current fiscal year¥8.2 billion
EPS¥268.8
New Store Openings75 stores
Store closures5 stores (large-format stores)
Remodeling from large-format stores to R stores9 stores temporarily closed in preparation for format changes (not included above)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue was ¥290 million below plan, gross profit was ¥100 million above plan, operating income was ¥130 million above plan, and quarterly net income was ¥21 million below plan. SG&A expenses were broadly in line with expectations.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue: sharp decline in rice prices and sluggish sales of seasonal products due to low temperatures. Gross profit: steady growth in rebates, control of waste in fresh foods and daily-delivery products, and the passing on of higher costs through selling prices. Quarterly net income: timing mismatch of tax expenses.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumes year-on-year same-store sales growth of +3.5%, investment CF/operating CF controlled at 1.0x to 1.5x, an equity ratio of approximately 30% to 40%, EPS growth of at least 10%, and a cost of shareholder equity of 8%.New initiatives
Plans to open 75 new stores and establish one new logistics center, Aichi Okazaki RPDC, in 2029. The company will continue growth investments focused on new stores and new logistics centers.Key KPIsA metric the company considers important as a management benchmark.
- Same-store sales, all stores+6.1%Year on year against the same period last year+6.1%
- Existing-store revenue△1.1%Year on year against the same period last year△1.1%
- Customer count+0.6%Year on year against the same period last year+0.6%
- Average spend per customer△1.7%Year on year against the same period last year△1.7%
- Average price per item△1.7%Year on year against the same period last year△1.7%
- Number of items purchased±0.0%Year on year against the same period last year±0.0%
- Operating profit per tsubo¥63 thousand/tsubo/year
- ROE12.1 %
- Equity ratio41.1 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Customer traffic +0.6%, average spend per customer -1.7%, average price per item -1.7%, items purchased per transaction ±0.0%Financial targets
ROE of approximately 13%, an equity ratio of 30% to 40%, and EPS growth of at least 10%. Forecast ROE for the fiscal year ending June 2027 is 14.0%.Number of stores and locations
9 new stores opened, 2 stores closed (large-format stores), and 2 stores converted from large-format stores and other formats to R stores. The total number of stores at period-end was Not disclosed.Capital expenditures
¥22,000 million
| Item | Details |
|---|---|
| Document type | Results briefing materials |
| Fiscal Period Covered | First quarter of the fiscal year ending June 2027 |
| Net Sales | ¥59,503 million (YoY +6.2%) |
| Operating profit | ¥2,762 million (YoY -5.3%) |
| Ordinary income | ¥2,740 million (YoY -7.4%) |
| Net income | ¥1,878 million (YoY -7.8%) |
| Gross Profit Margin | Rate 20.3% / Year-on-year change (points) +0.1 percentage points year on year |
| Operating profit margin | Rate 4.6% / Year-on-year change (points) -0.6 percentage points |
| Selling, general and administrative expenses | ¥9,341 million |
| Results for the three months of the current quarter | Includes standalone first-quarter revenue of ¥59,503 million, operating income of ¥2,762 million, ordinary income of ¥2,740 million and quarterly net income of ¥1,878 million, among other figures. |
| Full-year earnings forecast | Net Sales ¥244 billion / Gross Profit ¥49.9 billion / Selling, general and administrative expenses ¥37.9 billion / Operating profit ¥12,000 million / Ordinary income ¥12,100 million / Net income for the current fiscal year ¥8.2 billion / EPS ¥268.8 / New Store Openings 75 stores / Store closures 5 stores (large-format stores) / Remodeling from large-format stores to R stores 9 stores temporarily closed in preparation for format changes (not included above) |
| Self-assessment against the plan | Revenue was ¥290 million below plan, gross profit was ¥100 million above plan, operating income was ¥130 million above plan, and quarterly net income was ¥21 million below plan. SG&A expenses were broadly in line with expectations. |
| Breakdown of Factors Affecting the Change | Revenue: sharp decline in rice prices and sluggish sales of seasonal products due to low temperatures. Gross profit: steady growth in rebates, control of waste in fresh foods and daily-delivery products, and the passing on of higher costs through selling prices. Quarterly net income: timing mismatch of tax expenses. |
| Key KPIs | Indicator name Same-store sales, all stores / Value +6.1% / Year on year against the same period last year +6.1%, Indicator name Existing-store revenue / Value △1.1% / Year on year against the same period last year △1.1%, Indicator name Customer count / Value +0.6% / Year on year against the same period last year +0.6%, Indicator name Average spend per customer / Value △1.7% / Year on year against the same period last year △1.7%, Indicator name Average price per item / Value △1.7% / Year on year against the same period last year △1.7%, Indicator name Number of items purchased / Value ±0.0% / Year on year against the same period last year ±0.0%, Indicator name Operating profit per tsubo / Value ¥63 thousand/tsubo/year / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 12.1 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 41.1 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Customer traffic +0.6%, average spend per customer -1.7%, average price per item -1.7%, items purchased per transaction ±0.0% |
| Number of stores and locations | 9 new stores opened, 2 stores closed (large-format stores), and 2 stores converted from large-format stores and other formats to R stores. The total number of stores at period-end was Not disclosed. |
| Assumptions Underlying the Business Outlook | Assumes year-on-year same-store sales growth of +3.5%, investment CF/operating CF controlled at 1.0x to 1.5x, an equity ratio of approximately 30% to 40%, EPS growth of at least 10%, and a cost of shareholder equity of 8%. |
| Financial targets | ROE of approximately 13%, an equity ratio of 30% to 40%, and EPS growth of at least 10%. Forecast ROE for the fiscal year ending June 2027 is 14.0%. |
| Capital expenditures | ¥22,000 million |
| New initiatives | Plans to open 75 new stores and establish one new logistics center, Aichi Okazaki RPDC, in 2029. The company will continue growth investments focused on new stores and new logistics centers. |
Items this document does not state (11)
Progress against full-year forecastSegment resultsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders 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.The main reasons for the revenue shortfall were the sharp decline in rice prices and sluggish sales of seasonal products due to low temperatures. Gross profit exceeded plan due to steady growth in rebates, control of waste in fresh foods and daily-delivery products, and the passing on of higher costs through selling prices. The shortfall in quarterly net income was due to the timing mismatch of tax expenses versus the plan.
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