Fiscal Year 2025 Q3 Earnings Presentation Materials

Overview of Q3 Performance

Consolidated results for Q3 FY2025 showed operating revenues of ¥8,050.9 billion (99.0% of plan), operating income of ¥325 billion (101.6% of plan), and net income attributable to owners of parent of ¥198.4 billion (106.6% of plan). Year-over-year, operating revenues were 88.8%, operating income 103.1%, and net income attributable to owners of parent 311.9%, indicating a profit growth trend. The substantial increase in net income was mainly due to a reduction in special losses following the completion of the group's structural reform. By segment, contributions from domestic and overseas CVS businesses as well as the superstore business were significant.

Progress on Key Business Initiatives and Outlook

Initiatives to strengthen daily products via co-creative marketing were launched, introducing new products such as the delicious mixed rice balls in the rice category and the 'Oygase Noodles Series' in the noodles category. Existing store sales growth was +0.8%, customer count growth +1.5%, and average customer spend growth +3.0%, all strong results. The store network expansion plan remains to increase net store count by 1,000 stores by FY2030. 7NOW’s cumulative Q3 performance showed total sales growth of +42.7%, an average order price of ¥2,655, and delivery time of about 19 minutes, indicating continued expansion. SG&A expenses were controlled to 98.3% YoY, promoting efficiency.

Revision of Full-Year Earnings Forecast

Full-year operating income for FY2025 came in at ¥325 billion, exceeding the plan by 1.6% with an upside of ¥5.1 billion. Segment-wise operating income results were 104.2% of plan for domestic CVS, 94.2% for overseas CVS, 99.3% for superstore, 101.0% for financial-related, and 99.5% for others. Special losses declined substantially year-over-year to ¥54.7 billion. Based on these results, revisions to the full-year earnings forecast have been made, although specific revised figures are not disclosed.