Welcia (3141) Q3 2025 earnings summary

Executive summary

• Net sales for FY2025 3Q reached 951,916 million yen, up 4.6% year-over-year, driven by dispensing sales and M&A activity.

• Operating income decreased 26.5% year-over-year to 22,856 million yen due to higher SG&A from aggressive HR investment.

• Net income attributable to owners of parent was 14,778 million yen, down 27.5% year-over-year.

• Store network expanded to 3,014 locations, including new subsidiaries Welpark and WELCIA PARTNERS, with a focus on PB product development and customer engagement.

• Discontinued cigarette sales and launched health-focused initiatives as part of the 2030 vision.

Financial highlights

• Gross operating profit for 3Q was 284,964 million yen, up 3.7% year-over-year.

• SG&A expenses rose 7.6% year-over-year to 262,108 million yen, mainly from labor and advertising costs.

• Ordinary income decreased 23.2% year-over-year to 26,352 million yen.

• Net income per share was 71.41 yen, down from 98.44 yen in the prior year period.

• Comprehensive income fell 30.2% year-over-year to 14,335 million yen.

Outlook and guidance

• Full-year net sales forecast revised to 1,295,000 million yen, up 6.4% year-over-year.

• Full-year operating income forecast at 34,000 million yen, 78.6% of the previous year.

• Net income attributable to owners of parent projected at 19,000 million yen, 71.8% of the previous year.

• Annual dividend forecast raised to 36.00 yen per share, up from 34.00 yen in the previous year.