MonotaRO (3064): FY2025 Results Summary — Operating Income Up 24.6% as Profit Growth Outpaces Sales

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

MonotaRO Co., Ltd., an e-commerce company for indirect materials used in factories, construction work, and automotive-related businesses, reported results for fiscal year 2025 (January–December 2025). Consolidated net sales reached 333,880 million yen, up 15.9% year on year and 1.7% above plan, while consolidated operating income rose 24.6% to 46,192 million yen, with profit growth outpacing sales growth. The company highlighted strong fourth-quarter demand for office supplies, growth in both the MonotaRO.com Business and the Enterprise Business, a gross profit ratio up 0.3pt year on year, and an SG&A expense ratio down 0.4pt.

Consolidated Results (Full-Year Actual)

Consolidated sales of 333,880 million yen exceeded both the prior year (+15.9%) and the plan (+1.7%). Gross profit rose 18.0% to 99,636 million yen (29.8% of sales), and the SG&A expense ratio improved to 16.0% from 16.4%, lifting operating income 24.6% to 46,192 million yen (13.8% of sales, +7.4% vs. plan). Net income attributable to owners of the parent increased 23.1% to 32,434 million yen.

Item	FY2024 Result (mil. JPY)	FY2025 Result (mil. JPY)	YoY	vs. Plan
Sales	288,119	333,880	+15.9%	+1.7%
Gross Profit	84,420	99,636	+18.0%	+2.9%
SG&A Exp.	47,353	53,443	+12.9%	△0.7%
Operating Income	37,066	46,192	+24.6%	+7.4%
Current Income	37,320	46,057	+23.4%	+7.0%
Net Income	25,726	31,979	+24.3%	+7.2%
Net Income attributable to owners of the parent	26,338	32,434	+23.1%	+7.1%

Non-consolidated Results and Business Breakdown

Non-consolidated sales grew 16.9% to 322,814 million yen (+2.5% vs. plan). The MonotaRO.com Business grew on increases in both the number of orders and the unit price per order, and the Enterprise Business grew 23.5% to 106,310 million yen on an increase in the number of customers placing orders, although it finished 1.3% below plan. Royalty income also increased year on year. Non-consolidated operating income rose 22.9% to 47,379 million yen, with the operating income ratio up 0.7pt to 14.7%. Net income of 32,659 million yen (+25.7%) reflected an extraordinary loss of 963 million yen for the impairment of shares in consolidated overseas subsidiaries.

Item	FY2024 Result (mil. JPY)	FY2025 Result (mil. JPY)	YoY	vs. Plan
Sales	276,100	322,814	+16.9%	+2.5%
Enterprise Bus. (within sales)	86,083	106,310	+23.5%	△1.3%
Gross Profit	82,141	97,243	+18.4%	+3.6%
SG&A Exp.	43,591	49,864	+14.4%	+0.1%
Operating Income	38,550	47,379	+22.9%	+7.5%
Net Income	25,984	32,659	+25.7%	+5.6%

Overseas Subsidiaries

NAVIMRO (South Korea) posted FY2025 sales of 9,220 million yen (△7.3% YoY), falling short of both 2024 results and plan, though it achieved operating profit through improved gross margin (operating income of 0 million yen as presented). MONOTARO INDONESIA recorded sales of 1,400 million yen (+10.8% YoY) with an operating loss of △300 million yen. IB MONOTARO (India) had sales of 600 million yen (△35.1% YoY) and an operating loss of △860 million yen as its business focus shifted to small and medium-sized enterprises. For FY2026, the company plans sales of 9,900 million yen at NAVIMRO (+7.4%), 1,890 million yen at MONOTARO INDONESIA (+35.2%), and 720 million yen at IB MONOTARO (+19.5%).

FY2026 Plan

For fiscal 2026 (January–December 2026), MonotaRO plans consolidated sales of 381,379 million yen (+14.2% YoY) and consolidated operating income of 53,069 million yen (+14.9% YoY), again aiming for profit growth that outpaces sales growth while maintaining the operating profit margin at the previous year’s level. The plan incorporates retention of the incremental office-supplies demand seen in 2025. It also reflects a revision of the royalty agreement with Zoro US from a variable to a fixed amount (equivalent to the past five-year average), resulting in a year-on-year decrease in royalty income. The non-consolidated Enterprise Business is planned to grow 20.4% to 127,985 million yen.

Item	FY2026 Plan (mil. JPY)	FY2025 Result (mil. JPY)	YoY
Sales	381,379	333,880	+14.2%
Gross Profit	113,035	99,636	+13.4%
SG&A Exp.	59,966	53,443	+12.2%
Operating Income	53,069	46,192	+14.9%
Current Income	52,789	46,057	+14.6%
Net Income	35,895	31,979	+12.2%
Net Income attributable to owners of the parent	36,180	32,434	+11.5%

Shareholder Returns

MonotaRO’s dividend policy aims to maintain a dividend payout ratio of 50% or higher based on net income attributable to owners of the parent. The FY2025 dividend is 33.00 JPY per share (15.00 JPY interim actual and 18.00 JPY fiscal year-end forecast); the year-end dividend is planned to be increased to 18.0 JPY from 16.0 JPY as profit attributable to owners of the parent exceeded plan. For FY2026, the company plans a dividend of 37.0 JPY per share (18.00 JPY interim and 19.0 JPY fiscal year-end). In addition, in line with its Capital Allocation Policy disclosed on January 31, 2025, the company decided on February 3, 2026 to acquire treasury shares of up to 10 billion yen or 8 million shares (whichever occurs first) via market purchase, over an acquisition period from February 4, 2026 to December 30, 2026 (planned). All shares acquired will be cancelled after the repurchase is completed.

Item	FY2025	FY2026 (Plan)
Annual dividend per share	33.00 JPY	37.0 JPY
Interim dividend per share	15.00 JPY (actual)	18.00 JPY (plan)
Fiscal year-end dividend per share	18.00 JPY (forecast)	19.0 JPY (plan)

Capital Allocation and Mid-to-Long-Term Targets

The company’s mid-to-long-term targets are sales growth of over 15% year on year, profit growth that outpaces sales growth, and an ROE level of 30% or higher. Growth investments in capacity expansion, such as distribution centers, are basically funded with debt. As a major capacity investment, construction of the Mito DC started in May 2025, with completion planned for May 2027 and start of operations planned for May 2028; the investment amount is 50.4 billion yen, with an inventory capacity of 500 thousand SKU and a shipping capacity of 300 thousand lines per day. The company estimates its share of the domestic MRO market at 3.2 to 4.0% in 2025 (versus 2.4% to 3.0% in 2023), and the number of registered customers reached 11,262 thousand accounts as of December 2025 (10,147 thousand as of December 2024).

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.