ASKUL (2678) Q1 2025 earnings summary

Executive summary

• Net sales increased by 4.7% year-over-year to ¥118.4 billion, driven by growth in both ASKUL and LOHACO businesses, but operating profit declined by 8.9% due to a temporary drop in gross profit margin from foreign exchange impacts and increased fixed costs.

• ASKUL business grew 4.6% year-over-year, with growth measures underway; LOHACO business expanded 8.7% and aims to maintain profitability.

• Profit attributable to owners of parent fell 10.7% year-over-year to ¥1.54 billion.

• Shareholder returns prioritized with a resolution to acquire ¥2 billion in treasury stock, targeting a total shareholder return ratio of 45%.

Financial highlights

• Net sales: ¥118.4 billion (+4.7% YoY); Gross profit: ¥28.0 billion (+0.6% YoY); Gross profit margin: 23.6% (-1.0pt YoY).

• Operating profit: ¥2.57 billion (-8.9% YoY); Ordinary profit: ¥2.51 billion (-8.0% YoY); Profit attributable to owners: ¥1.54 billion (-10.7% YoY).

• Gross profit margin decreased by 1.1 points YoY to 23.9%, while SG&A ratio improved by 0.7 points to 21.7%.

• Comprehensive income for the quarter was ¥1,623 million, down 9.9% YoY.

• Basic earnings per share for the quarter were ¥16.08, compared to ¥17.74 in the prior year.

Outlook and guidance

• Full-year forecast for FY ending May 2025 remains unchanged: net sales of ¥500 billion (+6.0% YoY), operating profit of ¥18 billion (+6.2% YoY), and profit attributable to owners of parent of ¥11.2 billion (+41.5% YoY).

• Expectation of improved gross profit margin as foreign exchange positions recover in the second half.

• Continued expansion of product assortment and digital transformation initiatives to drive future sales growth.