Pan Pacific International Holdings (7532) Q4 2026 earnings summary

Executive summary

• Net sales for FY6/26 reached ¥2.4453 tn, up 8.8% year-over-year, with record profit attributable to owners of parent at ¥110.1 bn, up 21.6% YoY, driven by strong customer traffic, new store openings, and tax-free sales.

• Opened 25 new domestic stores and 5 overseas, including the Robin Hood food-focused retail format.

• Olympic Group became a consolidated subsidiary via share exchange effective July 1, 2026, expected to drive synergies and network expansion.

• Advanced ESG initiatives, including renewable energy adoption, plastic reduction, and diversity promotion.

• FY6/27 will focus on transformation initiatives, Olympic Group reforms, AI and PB/OEM strategies, and expanding the majica app membership.

Financial highlights

• Operating income rose 7.7% to ¥174.8 bn, with a stable operating margin of 7.2%; ordinary profit up 12.0% to ¥177.5 bn.

• Gross profit: ¥768.4 bn (+7.2% YoY); SG&A: ¥593.6 bn (+7.1% YoY); EBITDA: ¥228.0 bn (+8.3% YoY).

• Basic EPS: ¥36.84 (+21.5% YoY), reflecting a 5-for-1 stock split.

• Equity ratio: 44.0% (+3.9 pt YoY); cash and cash equivalents at period end increased to ¥218.5 bn.

• Q4 FY6/26 net sales: ¥618.7 bn (+10.8% YoY); Q4 operating income: ¥37.3 bn (+11.0% YoY).

Outlook and guidance

• FY6/27 guidance: Net sales ¥2.6870 tn (+9.9% YoY), operating income ¥179.0 bn (+2.4% YoY), profit attributable to owners of parent ¥110.5 bn (+0.4% YoY), EBITDA forecast at ¥238.4 bn (+4.6% YoY).

• Excluding Olympic Group, net sales expected at ¥2.5810 tn (+5.6% YoY), operating income ¥184.0 bn (+5.2% YoY), operating margin 7.1%.

• Olympic Group expects an operating loss of ¥5.0 bn in FY6/27 due to transformation investments.

• Long-term plan targets net sales of ¥4,200 bn and operating income of ¥330 bn by FY2035.

• Focus on accelerating domestic store openings, revitalizing Olympic Group stores, and expanding new retail formats.