G-7 HOLDINGS (7508): FY2025 Results Summary — Higher Sales but Lower Net Income, Annual Dividend Raised to 70 Yen

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

Note: G-7 HOLDINGS Inc. does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. For the fiscal year ended March 2026 (full year), G-7 HOLDINGS reported consolidated net sales of 232,199 million yen (up 8.4% year on year), operating profit of 7,270 million yen (up 2.1%) and ordinary profit of 7,727 million yen (up 3.5%), for higher sales and higher profit, while profit attributable to owners of parent fell 3.5% to 4,767 million yen. On shareholder returns, the company paid an annual dividend of 70 yen (up 30 yen year on year), including a 30 yen commemorative dividend marking the 50th anniversary of its founding. For the fiscal year ending March 2027 it expects higher sales and higher profit across the board, with net sales of 250.0 billion yen and operating profit of 8.9 billion yen.

Consolidated Results (Fiscal Year Ended March 2026, Actual)

Consolidated net sales were 232,199 million yen (up 8.4% year on year), operating profit was 7,270 million yen (up 2.1%) and ordinary profit was 7,727 million yen (up 3.5%), for higher sales and higher profit. On the other hand, profit attributable to owners of parent was 4,767 million yen (down 3.5%), a decline in profit. Total assets were 81,560 million yen (up 15.4% year on year) and net assets were 35,524 million yen (up 9.1%), while cash and deposits increased to 20,793 million yen (up 23.3%).

Item	FY3/2026	FY3/2025	YoY change
Net sales	232,199 million yen	214,129 million yen	up 8.4%
Operating profit	7,270 million yen	7,122 million yen	up 2.1%
Ordinary profit	7,727 million yen	7,466 million yen	up 3.5%
Profit attributable to owners of parent	4,767 million yen	4,939 million yen	-3.5%

Segment (Business) Results

By business, the composition of net sales was Gyomu Super business 59.2%, Automotive-related business 21.4%, Meat business 10.4% and Other 11.0%. The composition of ordinary profit was Gyomu Super business 61.4%, Automotive-related business 29.2%, Other 3.6% and Meat business 3.5%. In the Automotive-related business, same-store sales at domestic AUTOBACS stores rose 2.2% year on year and trended firmly, producing higher sales and higher profit. The overseas used-car export sales business set a record high in sales on the tailwind of the weaker yen, but profit edged down slightly because of foreign exchange losses recorded. In the Gyomu Super business, same-store sales rose 2.8% year on year and trended firmly, and with 8 new store openings and 1 closure the store count expanded to 223 stores, with net sales setting a record high for a further consecutive year; ordinary profit, however, declined because of higher personnel expenses, new store opening costs and an increase in goodwill amortization. In the Meat business, same-store sales at “Oniku no Terabayashi” rose 2.4% year on year, and G-7 Meat Planning, which was made a subsidiary in October 2025, contributed higher sales and higher profit, while G-7 Meat Terabayashi saw lower profit owing to persistently high raw material prices and other factors. In the Other business, the specialty foods and private brand business posted higher sales and higher profit, while the mini-supermarket business and the agriculture business posted lower sales.

Business	Net sales (FY3/2026)	YoY change	Ordinary profit (FY3/2026)	YoY change
Automotive-related business	49,651 million yen	up 7.8%	2,256 million yen	up 12.5%
Gyomu Super business	132,840 million yen	up 7.4%	4,745 million yen	-2.4%
Meat business	24,091 million yen	up 14.6%	267 million yen	up 25.3%
Other	25,615 million yen	up 9.8%	275 million yen	-6.5%

Full-Year Forecast

For the fiscal year ending March 2027, the company forecasts net sales of 250,000 million yen (up 7.7% year on year), operating profit of 8,900 million yen (up 22.4%), ordinary profit of 9,000 million yen (up 16.5%) and profit attributable to owners of parent of 5,800 million yen (up 21.7%), for higher sales and higher profit on every line. As positive factors it cites higher sales and higher profit in all businesses centered on the Gyomu Super business (with loss-making businesses narrowing their losses), aggressive new store openings in the Gyomu Super business (13 stores) and expanded openings of the prepared-foods store “Chisouna,” aggressive openings in the Meat business for “Oniku no Terabayashi” (15 stores) together with a full-year contribution from G-7 Meat Planning, continued firmness in the specialty foods business, and the September 2026 opening of the new store format “Workman Colors” (2 stores planned). As negative factors it cites the risk of delays to the store opening plan due to rising new store opening and renovation costs, and the risk that heightened thrift-mindedness from prolonged high crude oil prices will affect net sales across the retail business as a whole.

Item	FY3/2027 (Forecast)	FY3/2026 (Actual)	YoY change
Net sales	250,000 million yen	232,199 million yen	up 7.7%
Operating profit	8,900 million yen	7,270 million yen	up 22.4%
Ordinary profit	9,000 million yen	7,727 million yen	up 16.5%
Profit attributable to owners of parent	5,800 million yen	4,767 million yen	up 21.7%

Shareholder Returns

The company targets a progressive dividend of at least 70 yen per share, with a payout ratio of around 50% as a guide. For the fiscal year ended March 2026 it paid an annual dividend of 70 yen (up 30 yen year on year), consisting of an ordinary dividend of 40 yen plus a 30 yen commemorative dividend for the 50th anniversary of its founding, and the consolidated payout ratio was 64.2%. For the fiscal year ending March 2027 it plans to continue with 70.0 yen (unchanged year on year) following the change in its dividend policy.

Fiscal year	Dividend per share	Consolidated payout ratio
FY3/2022	37 yen	30.6%
FY3/2023	38 yen	43.8%
FY3/2024	40 yen	34.1%
FY3/2025	40 yen	35.5%
FY3/2026	70 yen (including a 30 yen commemorative dividend for the 50th anniversary of founding)	64.2%

Medium-Term Management Plan 2030

Under the new medium-term management plan “Medium-Term Management Plan 2030” (fiscal year ending March 2027 through fiscal year ending March 2031), announced on May 13, 2026, the company sets performance targets for the fiscal year ending March 2031 of consolidated net sales of 350.0 billion yen (average annual growth rate of 8.6%) and consolidated ordinary profit of 13.0 billion yen (11.0%). On shareholder returns, it plans to raise the payout ratio to around 50% as a guide and to continue a progressive dividend of at least 70 yen per share. On capital allocation, it expects operating cash flow and other sources of approximately 58.0 billion yen over the period, and plans to allocate approximately 17.5 billion yen to new store openings, approximately 13.5 billion yen to new businesses and M&A, and approximately 9.0 billion yen to store renovations and scrap-and-build. As a new initiative, it plans to conclude a corporate franchise agreement with Workman Co., Ltd. and to open 2 stores of the apparel retail format “Workman Colors” in September 2026.

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.