Asahi Co (3333) Q4 2026 earnings summary

Executive summary

• Net sales for FY ended Feb. 20, 2026 were ¥81,374.9 million, nearly flat year-over-year at 99.7% of the previous year, with profit declining 36.2% to ¥2,268.8 million due to lower bicycle unit sales and a shift toward repairs and reused products.

• Operating profit declined 28.2% year-over-year to ¥3,937.9 million, mainly due to higher SG&A expenses and a shift in product mix.

• E-commerce sales grew significantly, with the conversion ratio exceeding the 16.9% target and reaching 18%.

• Electric-assist bicycle sales were strong, offsetting declines in ordinary and sports bicycles.

• Store count reached 557 at year-end, with 15 new stores opened and a net increase of 12 stores.

Financial highlights

• Gross profit was ¥38,791.4 million (47.7% of net sales), up slightly year-over-year.

• Ordinary profit was ¥4,169.6 million (5.1% of net sales), down 25.9% year-over-year.

• Net profit was ¥2,268.8 million (2.8% of net sales), a 36.2% decrease year-over-year.

• SG&A expenses rose 4.8% to ¥34,853.5 million, mainly due to wage increases and business expansion.

• Annual dividend maintained at ¥50.00 per share, with a payout ratio of 57.4%.

Outlook and guidance

• FY ending Feb. 20, 2027 net sales are projected at ¥86,278 million, up 6% year-over-year.

• Operating profit is forecast to rise 9.2% to ¥4,300 million, with net profit expected to increase 20.3% to ¥2,730 million.

• Focus areas include strengthening OMO/CRM integration, expanding parts and maintenance services, and enhancing digital platforms.

• Market share is expected to rise to 26%.

• Annual dividend forecast for FY27 is ¥50.00 per share.