Asahi Co (3333) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended November 20, 2024, rose 4.6% year-over-year to ¥64,537 million, driven by strengthened OMO and CRM strategies, increased electric-assist bicycle sales, and higher e-commerce conversion rates.

• Operating profit increased 13.4% year-over-year to ¥5,584 million, with net profit up 11.7% to ¥3,775 million, supported by improved profitability outside new bicycle sales.

• Achieved record-high net sales and sales per customer, with e-commerce share and Asahi brand net sales continuing to grow due to digital transformation and brand management.

• Growth initiatives included expanding the reuse business, strengthening OMO, and opening new urban stores.

• Enhanced supply chain by relocating the West Japan logistics center to improve delivery efficiency.

Financial highlights

• Net sales rose to ¥64,537M, up 4.6% year-over-year; operating profit increased 13.4% to ¥5,584M; net profit up 11.7% to ¥3,774M.

• Gross profit for the period was ¥25,065 million, with a stable gross profit margin of 47.5% and improved SG&A expenses ratio at 38.8%.

• E-commerce net sales grew 24% year-over-year, now accounting for 16% of retail sales.

• Asahi brand net sales reached ¥30,863M, up 5.2% year-over-year.

• Basic earnings per share increased to ¥144.90 from ¥129.36 year-over-year.

Outlook and guidance

• Full-year net sales forecast at ¥82,500M, operating profit at ¥5,500M, both on track with over 78% and 101% progress, respectively, as of Q3.

• FY2025 plan targets 5.7% net sales growth and 12% operating profit growth year-over-year.

• Ordinary profit is projected at ¥5,800M (up 11.7%), and net profit at ¥3,680M (up 18.2%).

• Basic earnings per share for the full year is forecast at ¥140.91.

• Continued focus on strengthening OMO, CRM, and digital platforms to drive growth.