Sanyo Trading (3176) Q4 2025 earnings summary

Executive summary

• Net sales rose 2.7% year-on-year to ¥132,703 million, with record gross profit, but operating profit declined 9.1% due to increased personnel and IT investments.

• Profit in Life Science fell due to loss of distributor agreements, while Sustainability drove overall performance.

• The acquisition of EMAS Supplies & Services in Singapore expanded the value chain, especially in the automotive aftermarket and mobility business.

• Temporary performance lull expected in FY2026 due to upfront investments and project timing, with new projects contributing to profit from FY2027.

• The business environment was marked by global economic uncertainty, with strong performance in Japan and ASEAN, but challenges in China and North America.

Financial highlights

• Net sales: ¥132,703 million (+2.7% year-on-year); gross profit: ¥22,564 million (+1.5%).

• Operating profit: ¥6,430 million (-9.1% year-on-year); ordinary profit: ¥6,879 million (-13.0%).

• Profit attributable to owners: ¥4,615 million (-11.4%); EPS: ¥160.23.

• Record high gross profit ratio maintained at 17.0%.

• Cash and cash equivalents at year-end increased to ¥11,726 million, up ¥4,358 million from the previous year.

Outlook and guidance

• FY2026 forecast: Net sales ¥130,000 million (-2.0%), operating profit ¥6,200 million (-3.6%), profit attributable to owners ¥4,100 million (-11.2%), EPS ¥142.31.

• New projects expected to drive profit growth from FY2027, aiming to achieve SV2028 targets and ¥9,000 million operating profit by 2028.

• Annual dividend for FY2025 set at ¥57 per share, with a planned increase to ¥58 per share for FY2026.