Asahi Co (3333) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended August 20, 2024, rose 6.1% year-over-year to ¥46,420.8M, with operating profit up 12.9% to ¥4,763.9M and net profit up 11.8% to ¥3,265.1M.

• Achieved sales and profit growth amid a gradually recovering Japanese economy, despite global uncertainties and high raw material prices.

• Enhanced OMO (Online Merges with Offline) and CRM strategies, driving higher sales per customer and significant e-commerce growth.

• Sales and profits increased despite a 7% industry-wide decrease in finished bicycle imports, driven by strong demand for repairs, maintenance, and electric-assist bicycles.

• Enhanced reuse business and opened new urban store formats, increasing total stores to 537.

Financial highlights

• Gross profit increased 4.8% year-over-year to ¥21,709M, with a gross margin of 46.8%.

• SG&A expenses rose 2.8% to ¥16,945M, but the ratio to net sales improved to 36.5%.

• E-commerce net sales surged 29.8% year-over-year, now accounting for 16.6% of retail sales.

• Electric-assist bicycle sales grew 13.2% year-over-year to ¥13,298M.

• Basic earnings per share: ¥125.31 (vs. ¥111.84 last year).

Outlook and guidance

• Full-year FY2025 net sales are forecast at ¥82,500M (+5.7% year-over-year), with operating profit projected at ¥5,500M (+12.0%), ordinary profit at ¥5,800M (+11.7%), net profit at ¥3,680M (+18.2%), and EPS ¥140.91.

• Plans include opening 15 new stores, enhancing digital/IT platforms, and further strengthening OMO and CRM links.

• Dividend per share is planned to increase to ¥50, targeting a payout ratio of 35.5%.