| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥348.8B | ¥351.8B | -0.9% |
| Operating Income | ¥15.3B | ¥15.3B | -0.2% |
| Ordinary Income | ¥15.5B | ¥15.8B | -1.4% |
| Net Income | ¥10.3B | ¥10.7B | -4.1% |
| ROE | 3.5% | 3.7% | - |
For FY2027 ending March Q1, Revenue was ¥348.8B (YoY -¥3.0B, -0.9%), Operating Income was ¥15.3B (YoY -¥0.0B, -0.2%), Ordinary Income was ¥15.5B (YoY -¥0.2B, -1.4%), and Net Income was ¥10.3B (YoY -¥0.4B, -4.1%), reflecting a slight decline in both revenue and profit. While revenue was largely flat year-over-year, Gross Margin decreased to 25.9% from 26.3% (down 0.4pt). SG&A ratio improved to 24.2% from 24.7% (improved 0.5pt), leaving Operating Margin steady at 4.4% (same as prior year). Ordinary Income fell 1.4% year-over-year due to a small deterioration in non-operating items, and Net Income declined 4.1% impacted by an effective tax rate of 32.5%. Progress against the full-year plan (Revenue ¥1,380.0B, Operating Income ¥55.0B, Net Income ¥35.0B) stands at Revenue 25.3%, Operating Income 27.9%, Net Income 29.4%, exceeding standard linear progress on the profit side and suggesting front-loaded performance in the first half.
[Revenue] Revenue was ¥348.8B, down 0.9% YoY, a slight decrease. As a single-segment food supermarket, detailed breakdowns are not disclosed, but weakness in existing-store traffic and average spend is implied. Gross margin declined to 25.9% from 26.3% (down 0.4pt), pressured by intensified markdowns, changes in product mix, and procurement environment impacts. Gross profit was ¥90.4B, ¥2.0B lower than ¥92.4B a year earlier.
[Profitability] SG&A was ¥84.6B, down ¥2.2B from ¥86.7B a year earlier, and the SG&A ratio improved to 24.2% from 24.7% (improved 0.5pt). Controls on labor and utilities helped offset the decline in gross margin. As a result, Operating Income was maintained at ¥15.3B, keeping Operating Margin at 4.4%. Non-operating items comprised dividend income ¥0.1B, interest income ¥0.0B, and interest expense ¥0.3B, netting to a ¥0.2B negative, yielding Ordinary Income of ¥15.5B (YoY -1.4%). Extraordinary items included Extraordinary Losses ¥0.4B (loss on retirement of fixed assets) and Extraordinary Gains ¥0.1B (gain on sale of fixed assets), netting to a ¥0.3B burden, resulting in Profit Before Tax of ¥15.3B. After deducting corporate taxes of ¥5.0B (effective tax rate 32.5%), Net Income was ¥10.3B (YoY -4.1%). In conclusion, despite slight declines in revenue and profit, SG&A control preserved operating profitability; declines at the Ordinary and Net Income levels were driven by a small increase in non-operating and tax burdens.
[Profitability] Operating Margin is 4.4% (same as prior year 4.4%). Gross Margin fell to 25.9% from 26.3% (down 0.4pt), while SG&A ratio improved to 24.2% from 24.7% (improved 0.5pt), offsetting the gross margin decline. Net Profit Margin is 3.0%, down 0.1pt from 3.1% a year earlier. ROE is 3.5%, low, indicating substantial room for capital efficiency improvement. [Cash Quality] Interest Coverage is 49.4x (Operating Income ¥15.3B ÷ Interest Expense ¥0.3B), indicating very healthy coverage and minimal interest burden. Inventory turnover days are 62 days (Inventories ¥42.0B ÷ Cost of Goods Sold ¥248.9B × 365), suggesting some inventory stagnation and room for reduction. [Investment Efficiency] Total Asset Turnover is 0.584x (Revenue ¥348.8B ÷ Total Assets ¥597.4B), indicating reasonable asset efficiency. [Financial Soundness] Equity Ratio is 49.1%, down 2.7pt from 51.8% a year earlier but still at a healthy level. Current Ratio is 113.2% (Current Assets ¥240.0B ÷ Current Liabilities ¥212.0B), and Quick Ratio is 93.4%, indicating good short-term liquidity. Debt/Capital ratio is 18.8% (Interest-bearing Debt ¥119.5B ÷ Total Capital ¥597.4B), and D/E ratio is 1.04x, conservative. Cash and Deposits are ¥130.5B, up from ¥101.5B a year earlier (+28.6%), indicating ample financial flexibility.
Operating-level profit of ¥15.3B was maintained year-over-year, and the difference with Ordinary Income ¥15.5B is minor, indicating stable recurring cash generation. From balance sheet movements, Cash and Deposits rose to ¥130.5B, up ¥29.0B YoY (+28.6%), substantially improving liquidity. Accounts Receivable increased to ¥30.0B from ¥23.3B (+¥6.6B, +28.5%), possibly reflecting promotional activities or changes in payment terms that extended collection periods, which is a working capital cash drain. Inventories decreased to ¥42.0B from ¥44.9B (down ¥2.8B), and inventory compression generated cash. Accounts Payable increased to ¥92.3B from ¥82.4B (up ¥9.9B), and the growth in trade payables also aided working capital improvement. Tangible Fixed Assets increased to ¥248.0B from ¥241.5B (up ¥6.5B), indicating continued capital investment. The cash build appears to be the combined effect of steady Operating Cash Flow, AR collection dynamics, inventory reduction, and AP growth, implying strong short-term capacity for investment and shareholder returns.
The profit structure is largely driven by recurring operating income, with minor non-operating items. Non-operating income was ¥0.8B (Dividend income ¥0.1B, Other ¥0.1B), non-operating expenses were ¥0.6B (Interest expense ¥0.3B, Other ¥0.0B), netting to a ¥0.2B negative, so the bridge from Operating Income ¥15.3B to Ordinary Income ¥15.5B is stable. Extraordinary items were Extraordinary Gains ¥0.1B (Gain on sale of fixed assets ¥0.2B) and Extraordinary Losses ¥0.4B (Loss on retirement of fixed assets ¥0.4B), netting to a ¥0.3B burden and are limited in scope, indicating minimal impact from one-off items. The gap between Ordinary Income ¥15.5B and Net Income ¥10.3B is due to corporate taxes ¥5.0B (effective tax rate 32.5%), which is within a standard range. The difference between Operating Income and Ordinary Income is only ¥0.2B, underscoring a high degree of earnings recurrence. Comprehensive Income is ¥10.3B, almost identical to Net Income, with unrealized gain on securities ¥0.2B and actuarial adjustment for retirement benefits -¥0.1B being minor; unrealized items have limited impact on equity. Overall, the quality of earnings is high with minimal accrual distortions.
The full-year plan assumes Revenue ¥1,380.0B (assumed roughly flat YoY), Operating Income ¥55.0B (YoY -4.0%), Ordinary Income ¥55.0B (YoY -6.7%), and Net Income ¥35.0B. Q1 progress rates are Revenue 25.3%, Operating Income 27.9%, Ordinary Income 28.2%, and Net Income 29.4%, all above the standard 25% linear progression on the profit side. Operating Income is front-loaded by +2.9pt and Net Income by +4.4pt, aided by SG&A discipline and stable non-operating items. No revisions to the full-year outlook have been made; while strong first-half progress could imply conservative assumptions for the second half, recovery in Gross Margin and continued SG&A control are key to achieving the full-year targets.
Dividend guidance is ¥0, with no dividend declared. With Net Income ¥10.3B and Net Assets ¥293.5B, the company has a stable profit base and ample equity, and financial flexibility is sufficient; however, current policy appears to prioritize internal reserves and reinvestment. Payout Ratio and Total Return Ratio are both 0%, indicating no shareholder distributions. Future dividend policy introduction or the start of shareholder returns could be considered if profit growth and capital efficiency improve.
Gross Margin Pressure Risk: Gross Margin declined to 25.9% from 26.3% (down 0.4pt), driven by intensified markdowns, product mix shifts, and procurement environment impacts. In phases of heightened price competition or rising raw material costs, there is risk of further margin compression, necessitating reinforcement of private brands, mix improvement, and successful price pass-through.
Prolonged Inventory Turnover Risk: Inventory turnover days are 62 days, indicating some stagnation. Although Inventories decreased to ¥42.0B from ¥44.9B, further improvement is needed to normalize turnover. Prolonged inventory stagnation could lead to increased markdowns and disposal losses, pressuring gross margin and cash generation.
SG&A Upside Risk: SG&A ratio improved to 24.2% from 24.7% (improved 0.5pt), but potential future wage increases and higher electricity costs could push labor and utility expenses higher, risking a rebound in SG&A ratio. Cost increases amid muted revenue growth would compress Operating Margin and deteriorate profitability.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 4.4% | 3.4% (0.8%–7.7%) | +1.0pt |
| Net Profit Margin | 3.0% | 2.2% (0.5%–6.2%) | +0.7pt |
Profitability exceeds the industry median, indicating relative advantage in SG&A control.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | -0.9% | 7.7% (0.8%–14.6%) | -8.6pt |
Growth lags the industry median significantly; revitalizing same-store performance, new store openings, and strengthening format strategy are challenges.
※Source: Company compilation
While Operating Margin of 4.4% was maintained with a front-loaded progress rate of 27.9%, the 0.4pt decline in Gross Margin is a structural issue. If Gross Margin recovers through private brand strengthening, mix improvement, and effective price pass-through, there is upside to Operating Margin. Balancing continued SG&A discipline with gross margin recovery is key to improving profitability.
Cash and Deposits of ¥130.5B (21.8% of Total Assets) indicate ample liquidity, and a solid financial base is evidenced by Interest Coverage of 49.4x and D/E ratio of 1.04x. ROE of 3.5% is low, but there is significant room to improve capital efficiency via inventory turnover normalization (shortening turnover days from 62 toward the 50s) and gross margin recovery. Although dividends are currently not paid, potential initiation of shareholder returns could be considered if profit growth and capital efficiency improve.
This report was automatically generated by AI analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as necessary.