Kobe Bussan (3038) investor relations material

Executive summary

• Net sales rose 5.2% year-over-year to ¥432,933 million, driven by new store openings and steady shipments to existing stores.

• Operating profit increased 3.2% year-over-year to ¥31,316 million, while ordinary profit and profit attributable to owners of parent declined 9.6% and 10.9%, respectively, due to a high comparison base and lower FX gains.

• Gyomu Super, the core business, expanded to 1,144 stores, with a net increase of 22 stores in the first nine months and 7 in Q3.

• The company completed significant M&A activity, including the acquisition of MEAL HUB Co., Ltd. and Hakuro Sake Brewery Co., Ltd.

• Private label product ratio remained above 34%, with new products from Hakuro Sake Brewery added.

Financial highlights

• Gross profit increased to ¥53,009 million from ¥49,557 million year-over-year, with gross margin improving to 12.2%.

• SG&A expenses rose 12.9% year-over-year due to higher logistics and M&A-related outsourcing costs.

• Basic earnings per share for the period were ¥105.30, down from ¥118.37 in the prior year.

• Total assets reached ¥286,270 million, with an equity ratio of 54.7%.

• Cash and deposits increased by ¥20,713 million, contributing to a rise in current assets.

Outlook and guidance

• FY2026 full-year net sales forecast is ¥566,500 million (+2.7% YoY), with 76.4% progress as of Q3.

• Operating profit forecast is ¥43,000 million (+7.8%, 72.8% progress), and profit attributable to owners of parent is ¥29,500 million (−7.5%, 79.2% progress).

• Annual dividend forecast is ¥32.00 per share.

• Targeting a net increase of 32 Gyomu Super stores and 102%+ YoY growth in existing store sales.

• Focus on expanding private label products and acquiring more savings-oriented consumers.