Sugi Holdings (7649) Q1 2026 earnings summary

Executive summary

• Net sales for the three months ended May 31, 2025, rose 22.1% year-over-year to ¥245.5 billion, exceeding internal plans due to strong sales in health, beauty, daily necessities, and food, supported by recovering personal consumption and inbound demand.

• Operating profit increased 27.9% year-over-year to ¥11.0 billion, with EBITDA up 33.8% to ¥16.6 billion.

• Profit attributable to owners of parent surged 246.6% year-over-year to ¥21.2 billion, reflecting one-time tax effects.

• Comprehensive profit for the quarter reached ¥21,482 million, up 270.2% year-over-year.

• Upward revision of full-year consolidated forecasts, driven by higher sales and profit expectations and a decrease in deferred income taxes.

Financial highlights

• Earnings per share (basic) rose to ¥117.28 from ¥33.84 year-over-year.

• Total assets as of May 31, 2025, were ¥540,118 million, up from ¥495,116 million at the previous fiscal year-end.

• Net assets increased to ¥268,567 million, with a shareholders' equity ratio of 49.7%.

• Gross profit margin improved to 30.8% from 29.9% year-over-year.

• EBITDA increased 33.8% year-over-year to ¥16.6 billion.

Outlook and guidance

• Full-year net sales forecast revised upward by ¥5 billion to ¥1,005 billion, up 14.5% from the previous period.

• Profit attributable to owners of parent forecast raised by ¥10.2 billion to ¥44.2 billion, a 30% increase over previous guidance and up 72.1% year-over-year.

• Full-year basic EPS forecast at ¥244.24.

• Dividend forecast maintained at ¥35.00 per share for the fiscal year ending February 28, 2026.

• Upward revision reflects strong 1Q performance and expected tax benefits.