Pan Pacific International Holdings (7532) Q1 2026 earnings summary

Executive summary

• Net sales reached ¥573.3 bn, up 4.1% year-over-year, driven by domestic retail growth, tax-free sales, and new store openings.

• Operating income rose 0.7% to ¥41.3 bn; profit attributable to owners of parent increased 39.1% to ¥28.5 bn.

• Comprehensive income decreased 11.0% year-over-year to ¥26.8 bn.

• Gross profit margin declined 0.3pt to 31.8% due to strategic pricing and normalization after last year's disaster-driven demand.

• Kanemi Co., Ltd. became a consolidated subsidiary as of September 30, 2025.

Financial highlights

• Net sales: ¥573.3 bn (+4.1% YoY); gross profit: ¥182.0 bn (+3.0% YoY); operating income: ¥41.3 bn (+0.7% YoY); profit attributable to owners: ¥28.5 bn (+39.1% YoY).

• EBITDA: ¥54.2 bn (+2.3% YoY); basic EPS: ¥9.53 (+38.9% YoY), reflecting a 5-for-1 stock split effective October 1, 2025.

• Total assets as of September 30, 2025, were ¥1,493.2 bn, with net assets at ¥643.8 bn and an equity-to-asset ratio of 41.1%.

• Net cash provided by operating activities was ¥20.2 bn, while investing and financing activities used ¥17.7 bn and ¥39.8 bn, respectively.

• Free cash flow: ¥2.5 bn (improved by ¥12.0 bn YoY).

Outlook and guidance

• Full-year net sales forecast for FY ending June 30, 2026, is ¥2,327.0 bn (+3.6% YoY), with operating income projected at ¥170.0 bn (+4.7%) and profit attributable to owners at ¥105.5 bn (+16.6%).

• H1 FY6/26 forecast: net sales ¥1,170.5 bn, operating income ¥89.8 bn, ordinary profit ¥88.6 bn, profit attributable to owners ¥57.7 bn.

• Annual dividend per share forecast is ¥8.50 post-split (¥42.50 pre-split equivalent).

• New store openings planned: 52 for the full year, with 25+ already opened or scheduled.

• Continued focus on expanding store formats and product strategies to capture market share.