OKUWA Co., Ltd. (8217): FY2025 Results Summary — Back to Profit on Cost and Marketing Reforms

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Note: OKUWA’s fiscal year runs from March to the following February. The figures below are for the fiscal year ended February 20, 2026, which this site classifies as FY2025, consistent with the FY2025 label the company itself uses elsewhere in this presentation (see, for example, the brand-mix and treasury-share slides).

OKUWA Co., Ltd. (8217) reported consolidated operating revenue of ¥252,655 million for the fiscal year ended February 20, 2026, 101.0% of the prior-year level. Operating profit rose to ¥1,878 million, 141.4% of the prior-year level, and ordinary profit rose to ¥1,973 million, 136.8% of the prior-year level. Profit attributable to owners of parent turned positive at ¥264 million, compared with a net loss of ¥2,381 million in the prior year, though results came in below the company’s initial forecast on every line.

Consolidated Results (Full-Year Actual)

Operating revenue reached 97.6% of the initial forecast of ¥259,000 million. Operating profit and ordinary profit reached 89.5% and 94.0% of their respective ¥2,100 million forecasts. Profit attributable to owners of parent reached 33.1% of the ¥800 million initial forecast. Basic earnings per share was ¥6.44, versus a loss per share of ¥55.89 in the prior year. Figures are in millions of yen except per-share data, as reported in the presentation; YoY change and comparison against forecast are shown in percent as printed.

Item	FY2024 (Actual)	FY2025 (Actual)	Initial Forecast	YoY Change	vs. Forecast
Operating revenue	250,150	252,655	259,000	101.0%	97.6%
Operating profit	1,328	1,878	2,100	141.4%	89.5%
Ordinary profit	1,442	1,973	2,100	136.8%	94.0%
Profit attributable to owners of parent	(2,381)	264	800	－	33.1%
Basic earnings per share (yen)	(55.89)	6.44	19.16	+62.33	－

On a non-consolidated basis, operating revenue was ¥251,094 million (101.0% of the prior-year level), gross profit margin improved to 27.9% from 27.6%, and total SG&A expenses were ¥76,301 million, or 32.0% of net sales, versus 31.8% in the prior year. Full-year same-store sales were 99.7% of the prior year, with customer traffic at 97.3%, average spend per customer at 102.5%, items per transaction at 98.0%, and average selling price at 104.5% (figures before application of the Accounting Standard for Revenue Recognition).

Segment Results

By group company, OKUWA Co., Ltd.’s own (non-consolidated) operating revenue was ¥251,094 million (101.0% of the prior year) and ordinary profit was ¥1,785 million (133.1%). OAK FOODS posted operating revenue of ¥1,444 million (105.4%) and ordinary profit of ¥97 million (112.1%). Retail Backoffice Support posted operating revenue of ¥314 million (101.9%) and ordinary profit of ¥35 million (84.6%). SUNRISE’s operating revenue was ¥4,012 million, 74.3% of the prior-year level of ¥5,403 million, while its ordinary profit rose to ¥66 million (163.0%).

Company	FY2024 (Actual)	FY2025 (Actual)	YoY Change
OKUWA	248,636	251,094	101.0%
OAK FOODS	1,370	1,444	105.4%
Retail Backoffice Support	308	314	101.9%
SUNRISE	5,403	4,012	74.3%
Consolidation adjustment	(5,568)	(4,210)	－
Consolidated total	250,150	252,655	101.0%

Company	FY2024 (Actual)	FY2025 (Actual)	YoY Change
OKUWA	1,341	1,785	133.1%
OAK FOODS	87	97	112.1%
Retail Backoffice Support	41	35	84.6%
SUNRISE	40	66	163.0%
Consolidation adjustment	(42)	(42)	－
Share of profit of entities accounted for using equity method	(25)	31	－
Consolidated total	1,442	1,973	136.8%

FY2026 Forecast

For the fiscal year ending February 20, 2027, OKUWA forecasts consolidated operating revenue of ¥255,500 million (up 1.1% YoY), operating profit of ¥2,100 million (up 11.8%), ordinary profit of ¥2,100 million (up 6.4%), and profit attributable to owners of parent of ¥650 million (up 145.8%). On a non-consolidated basis, the company forecasts operating revenue of ¥254,000 million, operating profit of ¥2,000 million, ordinary profit of ¥2,000 million, and profit of ¥600 million. Management’s policy for the year is built on two pillars — business reform and marketing — targeting non-consolidated operating profit of ¥2.0 billion on operating revenue growth of 1.2% YoY. Priority initiatives include reducing working hours by 7% year on year to lower the break-even point, and expanding the number of pilot stores under the marketing program from 6 to 26.

Item (Consolidated)	FY2025 (Actual)	FY2026 (Forecast)	Growth Rate
Operating revenue	252,655	255,500	1.1%
Operating profit	1,878	2,100	11.8%
Ordinary profit	1,973	2,100	6.4%
Profit*	264	650	145.8%

Shareholder Returns

Dividend per share was unchanged at ¥26 for the fiscal year ended February 20, 2026, the same level as the prior two fiscal years. Because profit was low, the dividend payout ratio was 403.44%, versus 114.09% two years earlier (not meaningful in the prior year, which was a net loss). The company plans to acquire treasury shares totaling approximately ¥4.0 billion in aggregate over three years, from FY2024 through FY2026 (planned).

Fiscal Year	Treasury Share Acquisition
FY2024 (Actual)	1.0 billion yen
FY2025 (Actual)	1.0 billion yen
FY2026 (Planned)	2.0 billion yen

OKUWA will also change its long-term shareholder benefit program: starting with the shareholder benefits based on the record date of February 20, 2027, long-term benefits will require continuous share ownership of three years or more, up from the previous requirement of one year or more.

Medium-Term Plan / Topics

For the fiscal year ending February 20, 2027, OKUWA’s management policy centers on business reform (cost reduction and resource optimization) and marketing (ID-POS data utilization and product/store strategies). Store strategy is differentiated by format — Super Center (SuC), SSM (medium- to large-format supermarkets), and PRC (small-format stores) — with a newly established division to drive reform at small stores. During the year the company opened two new stores, Okuwa Toyoake (Aichi, projected annual sales ¥2.1 billion) and Okuwa Sakai-Shi Ekimae (Osaka, projected annual sales ¥1.7 billion), and one delicatessen-only store, ANDDELICA Suminodo (Osaka), with a further ANDDELICA store opening in Hirakata in March. On sustainability, the company targets a 50% reduction in GHG emissions from FY2017 levels and received a B score in CDP’s 2025 Climate Change Assessment for the second consecutive year.

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.