ASKUL (2678) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY5/2025 increased 2.5% year-over-year to ¥358.8 billion, setting a new record, but gross profit margin declined due to foreign exchange impacts and higher fixed costs, resulting in lower profits.

• Customer numbers began to recover in Q3, supported by sales growth initiatives and pricing optimization, though overall customer numbers declined year-over-year.

• Growth in the main ASKUL and LOHACO businesses was offset by sluggish demand for office supplies and increased fixed costs, including rents for new distribution centers.

• Full-year sales and profit forecasts were revised downward, with a focus on customer recovery and digital transformation to drive future growth.

• The company revised its full-year forecast, projecting net sales of ¥480 billion (+1.8% YoY) and profit attributable to owners of parent of ¥8.5 billion (-55.6% YoY).

Financial highlights

• Q3 FY5/2025 net sales: ¥358.8 billion (+2.5% YoY); gross profit: ¥86.8 billion (-0.4% YoY); gross profit margin: 24.2% (-0.7pt YoY).

• Operating profit: ¥9.8 billion (-21.6% YoY); ordinary profit: ¥9.7 billion (-21.4% YoY); profit attributable to owners: ¥6.1 billion (-62.2% YoY, prior year included ¥11.7 billion extraordinary gain).

• Gross profit margin declined by 0.7 points year-over-year to 24.6%, while the SG&A ratio increased by 0.1 points to 21.7%.

• Basic earnings per share for the nine months was ¥64.12, down from ¥165.62 in the prior year.

• Total assets decreased to ¥229,006 million from ¥243,062 million at the previous fiscal year-end; capital adequacy ratio stood at 33.3%.

Outlook and guidance

• Full-year FY5/2025 net sales forecast revised to ¥480 billion (+1.8% YoY), down ¥20 billion from initial plan.

• Operating profit forecast revised to ¥14 billion (-17.4% YoY), ordinary profit to ¥13.7 billion (-17.9% YoY), and profit attributable to owners to ¥8.5 billion (-55.6% YoY).

• Dividend payout increased to ¥38.00 per share for FY2025, up from ¥36.00 in the previous year.

• Stable dividends to continue at ¥19 per share.

• Medium- to long-term growth expected from FY5/2027, with ASKUL Kanto DC launch and logistics reorganization.