Asahi Co (3333) Q2 2027 earnings summary

Executive summary

• Net sales for the six months ended August 20, 2026, rose 0.7% year-over-year to ¥46,230 million, driven by strong electric-assist and children's bicycle sales, as well as increased parts and service revenue, despite higher costs and subdued consumer demand.

• Gross profit margin improved to 47.2% from 46.8% year-over-year, reflecting favorable product mix and price adjustments.

• Operating profit declined 14% year-over-year to ¥3,231 million due to higher personnel expenses, upfront investments in employee training, and increased costs from new store openings.

• The company continues to expand its circular business model, focusing on reuse, CRM, OMO strategies, and strengthening repair capabilities to enhance customer engagement and long-term value.

• Store count increased to 560, with five new stores opened and two closed during the period.

Financial highlights

• Net sales: ¥46,230 million (+0.7% year-over-year).

• Gross profit: ¥21,837 million (+1.6% year-over-year).

• Operating profit: ¥3,231 million (-14% year-over-year).

• Ordinary profit: ¥3,327 million (-15.2% year-over-year).

• Net profit: ¥2,193 million (-16.6% year-over-year).

• Basic earnings per share: ¥84.22 (down from ¥101.01 year-over-year).

Outlook and guidance

• Full-year FY ending Feb. 20, 2027, net sales projected at ¥86,278 million (+6% year-over-year), operating profit at ¥4,300 million (+9.2%), net profit at ¥2,730 million (+20.3%), and EPS at ¥104.83.

• Dividend forecast maintained at ¥50 per share for the full year.

• Plans include strengthening OMO and CRM, expanding service revenue, and investing in digital and IT platforms.