Aeon Hokkaido (7512) Q1 2025 earnings summary

Executive summary

• Revenue for the first quarter reached ¥83,048 million, up 4.1% year-over-year, marking a record high.

• Operating profit was ¥1,540 million, down 10.7% year-over-year, as higher SG&A costs offset gross profit gains.

• Net income for the quarter was ¥1,088 million, a 4.6% decrease compared to the same period last year.

• Growth initiatives included strengthening private brands, new store openings, and digital transformation.

• Sustainability efforts advanced with environmental fairs, food waste reduction, and logistics innovation.

Financial highlights

• Gross profit rose to ¥26,607 million, up 3.6% year-over-year.

• SG&A expenses increased to ¥25,067 million, up 4.6% year-over-year.

• Operating margin declined due to cost pressures despite record sales.

• EPS for the quarter was ¥7.82, down from ¥8.20 a year earlier.

Outlook and guidance

• Full-year revenue forecast remains at ¥351,000 million, up 5.4% year-over-year.

• Full-year operating and ordinary profit guidance unchanged at ¥11,000 million each.

• Net income forecast for the year is ¥6,400 million, up 3.3% year-over-year.

• No changes to dividend forecast; annual dividend expected at ¥16.00 per share.

• Impact from the planned acquisition of Hokkaido operations from Seiyu will be reflected from Q3.