SAN-A CO (2659) Q4 2025 earnings summary

Executive summary

• FY ended Feb. 2025 operating revenue was ¥237,156M, up 4.2% YoY; operating profit rose 2.8% to ¥16,923M and net income rose 7.4% to ¥11,469M.

• Higher unit prices amid inflation and stronger tenant and subsidiary sales supported results; inbound tax-free sales reached 206.6% of prior year, or 77.0% of FY2018.

• FY Feb. 2026 priorities include strengthening store operations and people, improving existing stores, expanding DX, and building an organization for continued growth.

Financial highlights

• FY Feb. 2025 sales were ¥218,592M, up 4.0% YoY; gross profit was ¥69,241M, up from ¥66,723M.

• Recurring profit rose 3.4% to ¥17,468M; comprehensive income reached ¥12,116M, up 8.4% YoY.

• SG&A expenses increased 4.8% to ¥70,882M, reflecting higher freight and personnel costs, including wage revisions.

• Total assets were ¥191,224M, net assets ¥154,546M, and cash and cash equivalents ¥59,843M at year-end; capital adequacy ratio was 78.7%.

Outlook and guidance

• FY Feb. 2026 forecast: operating revenue ¥247,876M (+4.5%), sales ¥228,575M (+4.6%), operating profit ¥17,227M (+1.8%), recurring profit ¥17,796M (+1.9%), and net income ¥11,005M (-4.0%).

• EBITDA is projected at ¥24,308M, up 2.9%; forecast margins are 31.6% gross, 7.5% operating, 7.8% recurring, and 4.8% net income.

• H1 FY Feb. 2026 forecast: operating profit ¥9,030M (+1.5%), recurring profit ¥9,359M (+0.8%), and net income ¥6,060M (+2.1%); management cited Okinawa’s Obon holiday timing as a factor in H1 earnings declines.

• Existing-store sales are forecast to rise 4.9% for FY Feb. 2026; quarterly YoY estimates are 5.5%, 2.3%, 7.7%, and 4.5%.

• Gross margin is forecast at 31.6% versus 31.7% in FY Feb. 2025; logistics, wage increases, new stores, renovations, and DX investment are expected to pressure costs.