Asahi Co (3333) Q1 2027 earnings summary

Executive summary

• Net sales for the three months ended May 20, 2026, increased 2.5% year-over-year to ¥27,786 million, driven by strong sales of electric-assist and children's bicycles, but operating profit declined 5.3% to ¥3,097 million and net profit fell 8.4% to ¥2,140 million due to higher costs and investments.

• The company is advancing its medium-term management plan, focusing on expanding service domains, building a circular business model, strengthening CRM and OMO integration, and refining its digital platform.

• The business environment was challenged by cautious consumer spending and a shift toward longer bicycle replacement cycles, with demand for new bicycles subdued.

• Store count remained stable at 557, with one opening and one closure during the quarter, including 18 franchise locations.

Financial highlights

• Gross profit rose 2.3% year-over-year to ¥12,597 million, maintaining a gross margin of 45.3%.

• Operating profit decreased to ¥3,097 million from ¥3,271 million, and ordinary profit dropped to ¥3,138 million from ¥3,403 million.

• Net profit fell 8.4% to ¥2,140 million, and basic earnings per share declined to ¥82.18.

• SG&A expenses increased 5.1% year-over-year, mainly due to higher personnel costs and business expansion.

• Total assets grew 4.3% to ¥58,500 million, and net assets rose 3.8% to ¥41,669 million.

Outlook and guidance

• For the fiscal year ending Feb. 20, 2027, net sales are projected to rise 6.0% to ¥86,278 million, with operating profit expected to grow 9.2% to ¥4,300 million and net profit forecast to increase 20.3% to ¥2,730 million.

• Basic earnings per share for the full year are forecast at ¥104.83.

• Dividend per share is planned at ¥50, maintaining a payout ratio of 35% or more.

• No changes have been made to previously announced forecasts.