Pan Pacific International Holdings (7532): FY6/25 Results Summary — Operating Income Rises 15.8% YoY on Record Discount Store Profit

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

Note: Pan Pacific International Holdings has a June fiscal year-end; this article covers the fiscal year ended June 30, 2025, the company’s most recent full year disclosed as of publication.

Pan Pacific International Holdings Corporation (PPIH) reported consolidated net sales of ¥2,246.8 billion for FY6/25, up 7.2% YoY, led by growth in domestic retail, especially same-store sales, supported by rising tax-free sales and 33 new store openings across the Group. Operating income rose 15.8% YoY to ¥162.3 billion, with operating margin improving 0.5pt YoY to 7.2%. Profit attributable to owners of parent increased 2.0% YoY to ¥90.5 billion, despite significant foreign exchange impacts and impairment losses. Net sales, gross profit, and operating income all came in above the company’s own FY6/25 forecast.

Consolidated Results (Full-Year Actual)

For the period July 1, 2024 to June 30, 2025, PPIH’s consolidated results improved across all major profit lines versus FY6/24, as shown below (Unit: Bn yen, except per-share data).

Item	FY6/25	FY6/24	YoY Change
Net sales	2,246.8	2,095.1	+151.7 (+7.2%)
Gross profit	716.7 (31.9%)	662.9 (31.6%)	+53.8 (+8.1%)
SG&A	554.4 (24.7%)	522.7 (24.9%)	+31.7 (+6.1%)
Operating income	162.3 (7.2%)	140.2 (6.7%)	+22.1 (+15.8%)
Ordinary profit	158.5 (7.1%)	148.7 (7.1%)	+9.8 (+6.6%)
Profit attributable to owners of parent	90.5 (4.0%)	88.7 (4.2%)	+1.8 (+2.0%)
Basic EPS (¥)	151.59	148.64	+2.95 (+2.0%)
EBITDA	210.5 (9.4%)	186.6 (8.9%)	+23.9 (+12.8%)

Segment Results

Domestic Discount Store business achieved ¥100 billion in operating income for the first time, with operating margin exceeding 7.2%, driven by record tax-free sales (up 48.6% YoY to ¥174.2 bn) and PB/OEM growth (up 28.8% YoY to ¥317.0 bn). UNY same-store net sales increased 2.4% YoY, though the company decided to pursue structural reform at small and mid-sized stores. Overseas operations posted an operating margin of 1.8%, impacted by impairment losses linked to delayed post-pandemic strategic decisions; within Overseas, the Asia business achieved its operating income target while the North America business exceeded targets that had been revised downward in Q2 FY6/25.

Segment	FY6/24	FY6/25	YoY Change
Domestic Discount Store	1,275.1 (60.9%)	1,396.1 (62.1%)	+9.5%
Domestic UNY	411.2 (19.6%)	426.2 (19.0%)	+3.6%
Overseas	329.6 (15.7%)	348.1 (15.5%)	+5.6%
Total	2,095.1 (100.0%)	2,246.8 (100.0%)	+7.2%

By operating business segment, full-year operating income for the Discount Store business rose to ¥103.8 billion (up ¥17.8 billion YoY), UNY operating income increased to ¥35.3 billion (up ¥1.1 billion), Asia operating income rose to ¥2.1 billion (up ¥1.8 billion), and North America operating income was ¥4.1 billion (down ¥0.4 billion YoY).

FY6/26 Forecast

For FY6/26, PPIH targets net sales of ¥2,327.0 billion, operating income of ¥170.0 billion, and an operating income margin of 7.3%. Profit attributable to owners of parent is expected to grow 16.5% YoY to ¥105.5 billion. By segment, net sales are forecast to grow at Discount Store (+5.0%) and UNY (+2.0%), while North America ((4.4)%) and Asia ((8.1)%) are expected to decline, partly reflecting foreign exchange assumptions and store closure impacts. Planned new store openings include 25 Discount Store openings (excluding new format), 4 in North America, and 1 in Asia.

Item	FY6/26 Forecast	FY6/25 (Actual)	YoY Change
Net sales	2,327.0 (100.0%)	2,246.8 (100.0%)	+3.6%
Gross profit	751.5 (32.3%)	716.7 (31.9%)	+4.9%
SG&A	581.5 (25.0%)	554.4 (24.7%)	+4.9%
Operating income	170.0 (7.3%)	162.3 (7.2%)	+4.7%
Ordinary profit	167.1 (7.2%)	158.5 (7.1%)	+5.4%
Profit attributable to owners of parent	105.5 (4.5%)	90.5 (4.0%)	+16.5%
Basic EPS (¥)	176.74	151.59	+16.5%
EBITDA	219.0 (9.4%)	210.6 (9.4%)	+4.0%

Shareholder Returns

PPIH increased its dividend for 22 consecutive years through FY6/25. The year-end dividend was revised upward from an initial forecast of ¥25 to ¥26, bringing the full-year dividend to a planned ¥35. The Board plans a 5-for-1 common stock split, with a record date of September 30, 2025 and an effective date of October 1, 2025, to enhance stock liquidity and broaden the individual investor base. For FY6/26, the company targets its 23rd consecutive year of dividend increases, with the full-year dividend (post-split) expected to rise to ¥8.5, up ¥1.5 YoY. The company states it will maintain a progressive dividend policy, keeping a 25% payout ratio in mind while balancing growth investment with shareholder returns. The shareholder benefit program will also be expanded with new experiential benefits in addition to the existing majica point offering, with details to be announced around November 2025.

Item	Value
FY6/25 year-end dividend (revised)	¥26 (up from initial forecast of ¥25)
FY6/25 full-year dividend (planned)	¥35
Consecutive years of dividend increases (through FY6/25)	22
Stock split	5-for-1 common stock split; record date September 30, 2025; effective October 1, 2025
FY6/26 full-year dividend forecast (post-split)	¥8.5, up ¥1.5 YoY
FY6/26 planned consecutive years of dividend increases	23

Long-Term Business Plan

PPIH’s new management team has announced a long-term business plan, “Double Impact 2035,” accelerating growth investment to enter what the company describes as a decade of breakthrough advancement. The plan frames “next-level earnings capability” as TAM (growth opportunities) × Execution model × Talent × Capabilities.

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.