IZUMI CO., LTD. (8273): FY2025 Results Summary — Record Operating Profit as SUNNY Business Turnaround Takes Hold

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

IZUMI CO., LTD. (TSE: 8273) reported consolidated results for the fiscal year ended February 28, 2026 (FY2025), with operating revenue of ¥569,312 million, equivalent to 108.6% of the previous year, and operating profit of ¥27,236 million (105.8% of the previous year), a record high. Profit attributable to owners of parent rose sharply to ¥16,834 million (136.8% of the previous year), reflecting a rebound from the previous fiscal year’s ransomware-related damages. While operating revenue came in slightly below the company’s revised plan due to weather-related factors amid heightened consumer frugality, profit at every stage exceeded the revised plan through effective control of the gross profit ratio and expenses.

Consolidated Results (Full-Year Actual)

Operating revenue increased on a rebound from the prior year’s ransomware attack, the addition of the SUNNY business and SUNLIFE through M&A, and measures addressing heightened consumer frugality. The operating gross profit margin was 39.1%, down 0.5 points year on year, while the SG&A expense ratio was 34.3%, down 0.4 points year on year. The operating profit margin fell 0.1 points year on year to 4.8%, and the ordinary profit margin declined 0.1 points to 4.8% on higher interest expenses. Profit margin rose 0.7 points to 3.0%, mainly due to a significant decrease in extraordinary losses (impairment losses of ¥7.7 billion in the previous fiscal year versus ¥1.7 billion in the fiscal year under review).

Item (Million yen)	FY2025 Result	FY2025 YoY	FY2024 Result	FY2024 YoY
Operating revenue	569,312	108.6%	524,142	111.2%
Operating profit	27,236	105.8%	25,735	81.9%
Ordinary profit	27,361	105.2%	26,009	80.5%
Profit attributable to owners of parent	16,834	136.8%	12,304	60.1%
Total assets	595,383	–	575,963	–
Net assets	307,939	–	299,603	–
Earnings per share	79.40 yen	–	57.33 yen	–
Equity ratio	49.4%	–	49.6%	–

Segment Results

Retail operations revenue increased on a recovery in retail sales, while revenue and profit from retail-peripheral operations also rose, driven mainly by Izumi Techno. Youme Mart Kumamoto, excluding the SUNNY business, showed a recovery trend, and Youme Mart Kitakyushu opened Youme Mart Sone in September, incurring start-up costs of ¥0.14 billion. The SUNNY business completed its system migration and the rollout of the private-brand line Kurashi More in the first half; third-quarter sales were steady, though cost structure remained a challenge, with a steady improvement trend in the fourth quarter. Yours recorded strong sales of the group’s private brand Youme-Ichi and returned to operating profitability excluding new-store start-up costs (¥0.07 billion). Izumi Techno’s construction and designated-administration businesses were strong, and while Youme Card and Izumi Food Service performed well operationally, their full-year profits declined mainly due to strengthened promotions and higher personnel expenses from wage increases.

Segment / Company	Metric	FY2025 Result	FY2025 YoY
Retail operations	Operating revenue	551,029	108.7%
Retail operations	Operating profit	20,782	104.0%
Retail-peripheral operations	Operating revenue	53,922	112.5%
Retail-peripheral operations	Operating profit	5,997	108.8%
Others and adjustments	Operating revenue	△35,640	–
Others and adjustments	Operating profit	456	–
Consolidated total	Operating revenue	569,312	108.6%
Consolidated total	Operating profit	27,236	105.8%
Izumi (non-consolidated)	Operating revenue	381,215	102.2%
Izumi (non-consolidated)	Operating profit	21,471	101.0%
Youme Mart Kumamoto	Operating revenue	108,709	142.3%
Youme Mart Kumamoto	Operating profit	165	172.0%
Youme Mart Kitakyushu	Operating revenue	25,391	103.5%
Youme Mart Kitakyushu	Operating profit	237	145.0%
Yours	Operating revenue	24,027	107.4%
Yours	Operating profit	63	105.3%
Youme Card	Operating revenue	8,670	105.6%
Youme Card	Operating profit	1,400	98.9%
Izumi Techno	Operating revenue	22,029	110.5%
Izumi Techno	Operating profit	2,628	109.0%
Izumi Food Service	Operating revenue	8,095	105.1%
Izumi Food Service	Operating profit	453	79.7%

FY2026 Forecast

The first fiscal year of the Third Medium-Term Management Plan is positioned as the first year of structural reforms to transform Izumi’s business model toward its FY2030 targets. The company will continue initiatives addressing consumer frugality amid prolonged inflation, align product strategy with consumer behavior, and strengthen sales promotion of the private brand Youme-Ichi. For the SUNNY business, which Izumi began operating in-house in the previous fiscal year, the company will drive sales promotion and low-cost operation of the Nichiryu private brand Kurashi More and its own Youme-Ichi brand to stabilize operations, targeting a year-on-year improvement of ¥1.0 billion in operating profit. One new store is planned for the fiscal year, and the company will also operate pilot stores for a new supermarket format. Operating profit is projected to increase 6.5% to ¥29.0 billion, reflecting growth in operating gross profit (+¥5.7 billion) partly offset by higher personnel expenses (-¥1.7 billion) and increased expenses for repairs at headquarters-managed stores (-¥1.0 billion). On a non-consolidated basis, Izumi forecasts operating revenue of ¥392,800 million (103.0% of FY2025) and operating profit of ¥21,500 million (100.1% of FY2025).

Item (Million yen, Consolidated)	FY2026 Forecast	FY2026 YoY	FY2025 Actual
Operating revenue	587,100	103.1%	569,312
Operating profit	29,000	106.5%	27,236
Ordinary profit	28,400	103.8%	27,361
Profit attributable to owners of parent	17,400	103.4%	16,834
EBITDA	49,400	101.6%	48.6 billion yen (as stated on the EBITDA waterfall slide)
Earnings per share	82.82 yen	–	79.40 yen

Shareholder Returns

Izumi’s fundamental shareholder return policy is a dividend payout ratio of 30% or more, with progressive dividends, alongside share repurchases aimed at achieving an optimal capital structure and executing a flexible capital strategy. In April 2025 and January 2026, the company purchased treasury shares totaling ¥4.9 billion. Izumi also carried out a three-for-one stock split of its common shares with a record date of February 28, 2026, to lower the investment unit price, improve stock liquidity, and expand its individual investor base.

Item	FY2024	FY2025	FY2026 Forecast
Annual dividend per share	30 yen	30 yen	30.00 yen

Note: the FY2024 and FY2025 dividend-per-share figures above are shown on a post-stock-split basis, as the annual dividend trend chart in the presentation states that dividend amounts for FY2025 and earlier were restated to reflect the three-for-one stock split effective March 1, 2026.

Medium-Term Plan / Topics

Izumi’s 2035 Long-Term Vision targets operating revenue of over ¥1 trillion (on the new revenue recognition standard), together with sustained improvement in its customer engagement score and an employee engagement score of 70 points or higher. As an intermediate step, the Third Medium-Term Management Plan (FY2026-FY2030) targets, on a “commit” basis, operating revenue of 7,000 and operating profit of 350 (both in units of 100 millions of yen as stated in the presentation), versus FY2025 results of 5,693 and 272 respectively, lifting the operating profit margin from 4.8% to 5.0%. Including the effect of M&A, the FY2030 targets rise to operating revenue of 8,000 and operating profit of 400 (100 millions of yen). The plan targets ROE of 6% or more and ROIC of 5% or more by FY2030, rising further under the Long-Term Vision to ROE of 10% or more and ROIC of 7% or more.

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.