| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥597.1B | ¥600.4B | -0.6% |
| Operating Income / Operating Profit | ¥-3.2B | ¥0.6B | +3.5% |
| Ordinary Income | ¥-2.8B | ¥1.1B | +1.5% |
| Net Income / Net Profit | ¥-2.7B | ¥0.1B | -2316.7% |
| ROE | -0.4% | 0.0% | - |
For the quarter ended February 2027 (Q1), Revenue was ¥597.1B (YoY -¥3.4B, -0.6%), Operating loss was ¥3.2B (vs. Operating income ¥0.6B in the prior year, deterioration of ¥3.8B), Ordinary loss was ¥2.8B (vs. Ordinary income ¥1.1B in the prior year, deterioration of ¥3.9B), and Net loss attributable to owners of the parent was ¥2.7B (vs. Net income ¥0.1B in the prior year, deterioration of ¥2.8B). A slight decline in sales led to an operating-stage swing to a loss, resulting in a quarterly loss.
【Revenue】Revenue was ¥597.1B, a slight decrease of -0.6% year-on-year. The Group reports a single segment—Supermarket Business—and the slight revenue decline appears driven by stagnation in both customer traffic and average spend at existing stores. Cost of goods sold was ¥410.7B, yielding Gross Profit of ¥153.5B (Gross Margin 25.7%), down approximately 30bp from an estimated 26.0% in the prior-year quarter. The gross margin decline suggests higher markdown rates and a deterioration in the mix of higher-value items such as fresh foods and prepared meals.
【Profitability】Selling, General and Administrative Expenses were ¥189.6B, up ¥1.8B (+0.9%) year-on-year, and the SG&A ratio rose to 31.7% from an estimated 31.3% in the prior-year quarter (approx. +40bp). Fixed costs such as labor and utilities increased and were not absorbed under slightly lower sales, resulting in an operating loss of ¥3.2B. Non-operating income totaled ¥1.1B, including dividend income of ¥0.4B, while non-operating expenses were ¥0.7B, mainly interest expense of ¥0.6B, leading to an Ordinary loss of ¥2.8B on a net basis. Extraordinary losses were minor at ¥0.2B for impairment/disposal of fixed assets; Loss before income taxes totaled ¥3.0B, and after a tax benefit of -¥0.3B, Net loss attributable to owners of the parent was ¥2.7B. In summary, this was a severe result with declines in revenue and profits (operating, ordinary, and net losses).
【Profitability】Operating margin was -0.5% (operating-stage loss), Net margin was -0.4%, and ROE was -0.4%, indicating severely depressed profitability. Gross margin at 25.7% decreased about 30bp year-on-year, while SG&A ratio at 31.7% rose about 40bp, so gross profit could not cover SG&A, causing the swing to loss. 【Cash Quality】Inventories were ¥114.0B, up ¥6.6B year-on-year, and Days Inventory Outstanding (DIO) remained high at approximately 101 days. Accounts receivable were ¥77.8B, up ¥8.2B year-on-year, so expansion of working capital has constrained cash conversion. 【Investment Efficiency】Total asset turnover annualized was 0.47x (Q1 revenue ¥597.1B ×4 ÷ Total assets ¥1,281.9B), low, and asset efficiency is limited given a high fixed-asset ratio (Tangible fixed assets ¥770.2B, 60.1% of total assets). 【Financial Soundness】Equity Ratio was 57.6% (prior-year quarter 57.5%) and stable, but Current Ratio was 82.9% (Current assets ¥304.3B ÷ Current liabilities ¥367.0B), below 100%, indicating thin short-term liquidity buffers. Interest-bearing debt totaled approximately ¥163.1B (Short-term borrowings ¥48.5B, Long-term borrowings ¥114.6B including current portion), and Interest Coverage shows severe weakness (Operating income -¥3.2B ÷ Interest expense ¥0.6B, effectively non-existent).
No cash flow statement was disclosed, so funding trends are analyzed from balance sheet movements. Cash and deposits were ¥94.9B, down ¥18.8B year-on-year, reducing liquidity. In working capital, inventories increased by ¥6.6B and accounts receivable increased by ¥8.2B, while accounts payable rose ¥9.2B, indicating supplier payables have temporarily supported cash flow. However, if inventory accumulation continues, delayed conversion of inventory to cash could weigh on Operating Cash Flow (OCF) generation. Fixed assets decreased ¥7.7B year-on-year (depreciation progress and restrained capital expenditures), and interest-bearing debt decreased ¥4.3B, suggesting limited funding needs from investing and financing activities. The main drivers of cash decline were the operating-stage loss and the increase in working capital; normalizing inventory turnover is a precondition for improving liquidity.
Earnings quality depends on structural issues in core operations. Non-operating income of ¥1.1B represents 0.2% of sales and is centered on recurring items such as dividend income of ¥0.4B; one-off profit contributions are limited. Of non-operating expenses ¥0.7B, interest expense ¥0.6B comprises the bulk, indicating interest burden is depressing ordinary income. Extraordinary items are minimal (extraordinary loss ¥0.2B), and the difference between ordinary loss and loss before taxes is small, so earnings sources largely depend on operating structure. Comprehensive income was -¥3.1B; relative to Net loss -¥2.7B, an actuarial adjustment related to retirement benefits of -¥0.5B was an additional negative factor, while valuation differences on securities were small, so the divergence between comprehensive income and net income is limited. Conclusion: the primary causes of the loss are the decline in gross margin and rise in SG&A ratio at the operating level, with little impact from transitory factors, indicating a persistent earnings weakness.
Full Year (FY) guidance: Revenue ¥2,555.0B (YoY not disclosed), Operating Income ¥21.0B (+11.8% YoY), Ordinary Income ¥21.0B (+6.4% YoY), Net income attributable to owners of the parent ¥6.5B. Progress at Q1: Revenue 23.4% (¥597.1B ÷ ¥2,555.0B, standard pace 25% => -1.6pt), Operating profit shows negative progress (-¥3.2B ÷ ¥21.0B), Ordinary profit negative progress (-¥2.8B ÷ ¥21.0B), Net profit negative progress (-¥2.7B ÷ ¥6.5B); all profit stages are materially behind plan. If the Q1 gross margin decline (~30bp) and SG&A ratio increase (~40bp) persist structurally, achieving the full-year plan requires fundamental gross margin improvement and SG&A reduction from Q2 onward. As long as DIO of 101 days and high inventory retention continue, recovery of sales efficiency and cash generation will be limited, making the plan reliant on large profit concentration in the second half.
Full-year dividend forecast is ¥13.00 per share, unchanged from the prior year. With full-year EPS forecast of ¥15.98, the Payout Ratio is approximately 81.3%, relatively high. Q1 recorded a Net loss of ¥2.7B (EPS -¥6.59), and although retained earnings (surplus) are ¥427.8B providing some capacity for dividends, if profit recovery is delayed, dividend sustainability will depend on performance recovery in H2. With Current Ratio at 82.9% and limited short-term liquidity, and Interest Coverage in negative territory indicating weak interest-bearing debt tolerance, if Operating Cash Flow does not improve and inventory turnover is not normalized concurrently, maintaining stable dividends may require drawing down internal funds.
Inventory efficiency risk: Inventories ¥114.0B, up ¥6.6B year-on-year, DIO approx. 101 days, high relative to peers. There is risk of increasing markdown rates and sustained gross margin decline due to inventory retention, which would suppress OCF generation. Delays in inventory optimization could lead to working capital expansion that pressures liquidity.
Short-term liquidity risk: Current Ratio 82.9% with Current assets ¥304.3B vs Current liabilities ¥367.0B, implying a short-term funding gap of approx. ¥62.8B. Cash and deposits ¥94.9B provide roughly a 2x buffer against short-term borrowings of ¥48.5B, but if operating losses persist and inventories increase, additional seasonal working capital needs may arise. High dependence on accounts payable of ¥139.2B poses risk that changes in supplier payment terms could impact liquidity.
Sticky fixed-cost risk: SG&A ratio 31.7%, about +40bp YoY, with fixed costs such as labor and utilities not being absorbed under slightly lower sales, reversing operating leverage. SG&A of ¥189.6B is a ¥1.8B YoY increase; if reductions in SG&A via labor savings or operational efficiency do not proceed, the persistence of high fixed-cost burden could delay recovery in operating profitability.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating margin | -0.5% | 3.4% (0.8%–7.7%) | -3.9pt |
| Net margin | -0.4% | 2.2% (0.5%–6.2%) | -2.7pt |
Operating margin is 3.9pt below the industry median, indicating underperformance within the sector.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth (YoY) | -0.6% | 7.7% (0.8%–14.6%) | -8.3pt |
Revenue growth is 8.3pt below the industry median, placing the company in the lower tier for growth.
※ Source: Company aggregation
Simultaneous ~30bp decline in gross margin and ~40bp rise in SG&A ratio led to an operating-stage swing to a loss; monitor progress on inventory optimization, pricing policy revision, and fixed-cost reduction. Q1 profit progress vs. full-year guidance is materially behind, and the pace of gross margin recovery and SG&A reduction from Q2 onward is key to achieving the full-year plan.
DIO of 101 days and working capital expansion are weighing on both OCF generation and short-term liquidity. With a Current Ratio of 82.9% (below 100%), normalizing inventory and managing dependence on accounts payable are prerequisites for stabilizing cash flow. The payout ratio is high at around 81% on the full-year plan, so prolonged delay in profit recovery warrants attention to dividend sustainability.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial statement data. Investment decisions are your responsibility; consult a professional advisor as needed.