Asahi Co (3333) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended August 20, 2025, were ¥45,900.9 million, a 1.1% decrease year-over-year, with sluggish new bicycle sales offset by strong e-commerce and electric-assist bicycle sales.

• Operating profit declined 21.1% year-over-year to ¥3,756.6 million, impacted by lower sales volume and increased SG&A expenses.

• Net profit decreased 19.4% year-over-year to ¥2,630.4 million.

• The business environment was challenging due to rising prices, cautious consumer spending, and a shift toward repair and reuse of bicycles.

• Store network expanded to 549 locations, with a net increase of four stores during the period.

Financial highlights

• Gross profit was ¥21,486.8 million, maintaining a 46.8% margin, nearly flat year-over-year.

• Ordinary profit fell to ¥3,923.6 million (down 19%), and net profit was ¥2,630.4 million (down 19.4%) compared to the same period last year.

• SG&A expenses rose 4.6% to ¥17,730M, mainly due to wage increases and business expansion.

• Cash and cash equivalents at period-end rose to ¥14,496.7 million, up ¥5,058.6 million from the previous fiscal year-end.

• Total assets increased 3.5% to ¥56,361.7 million; net assets rose 5.1% to ¥41,121.8 million.

Outlook and guidance

• Full-year FY2026 net sales are projected at ¥85,800 million (+5.2% YoY), with operating profit of ¥5,620 million (+2.4%).

• Ordinary profit is projected at ¥5,750 million (+2.2%), and net profit at ¥3,650 million (+2.6%).

• Focus areas include expanding e-commerce, increasing sales of parts and services, and improving gross margin through cost reductions.

• Dividend per share planned at ¥50, maintaining a high payout ratio.

• No changes have been made to the previously announced financial results forecast.