ASKUL (2678) Q4 2025 earnings summary

Executive summary

• Full-year FY5/2025 net sales reached a record ¥481.1 billion, up 2.0% YoY, driven by higher sales per customer despite a decrease in customer numbers and sluggish demand for traditional office supplies.

• Operating profit declined 17.4% YoY to ¥14.0 billion due to increased fixed costs, lower gross margin from FX impacts, and costs related to ASKUL Kanto DC.

• Profit attributable to owners dropped 52.6% YoY to ¥9.1 billion, reflecting higher costs and lower margins.

• The new Medium-Term Management Plan (FY5/2026–FY5/2029) targets growth in in-person service industries and daily necessities, aiming for ¥600 billion net sales, 5% operating profit margin, and 20% ROE by FY2029.

• FY5/2026 expects revenue growth but lower profit due to depreciation from ASKUL Kanto DC, core system replacement, and one-time costs, with a focus on a V-shaped recovery in FY5/2027.

Financial highlights

• FY5/2025 consolidated net sales: ¥481.1 billion (+2.0% YoY); operating profit: ¥14.0 billion (-17.4% YoY); profit attributable to owners: ¥9.1 billion (-52.6% YoY, prior year included extraordinary income).

• Gross profit margin decreased by 0.5pt to 24.4%; SG&A ratio increased by 0.2pt to 21.5%.

• Comprehensive income fell 51.5% YoY to ¥9,509 million.

• Cash and cash equivalents at year-end were ¥48,423 million, down ¥13,321 million from the prior year.

• Capital adequacy ratio improved to 34.2% from 32.2% a year earlier.

Outlook and guidance

• FY5/2026 forecast: net sales ¥500.0 billion (+3.9% YoY), operating profit ¥11.0 billion (-21.5% YoY), profit attributable to owners ¥6.6 billion (-27.2% YoY).

• E-commerce segment expects 4.2% sales growth but a 22.8% drop in operating profit; logistics segment projects a 10.9% sales decline but break-even operating profit.

• Dividend per share to be maintained at ¥38, with ongoing share buybacks.

• Capital expenditures planned at ¥15.2 billion for FY5/2026, up ¥2.5 billion YoY.

• Focus on customer recovery, logistics efficiency, and new value creation under the new medium-term plan.