Asante Incorporated (6073): FY2025 Results Summary — Sales Up 2.4% While Growth Investments Cut Operating Income 31.9%

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Asante Incorporated, the residential termite control specialist, reported FY2025 consolidated net sales of 14.35 billion yen, up 0.33 billion yen or 2.4% year on year, while operating income fell 0.39 billion yen (-31.9%) to 0.83 billion yen. The company summarised the year as one in which “Net sales increased due to the results of sales strategies, but earnings decreased as growth investments preceded while sales were below the plan.” Net income was 0.27 billion yen, down 60.1%. Alongside the results, Asante disclosed a new fixed three-year Medium-Term Management Plan covering FY2026 to FY2028.

Consolidated Results (Full-Year Actual)

All four headline lines came in above the forecast announced on March 17, 2026, with achievement ratios of 100.4% for net sales, 107.1% for operating income, 107.3% for ordinary income and 114.3% for net income. Operating income ratio was 5.8% and net income accounted for 1.9% of net sales.

Item (Billion yen)	FY2025 Results	Composition Ratio	YoY Change	YoY Change Ratio	Change vs. Forecast	Achievement Ratio
Net Sales	14.35	–	0.33	2.4%	0.05	100.4%
Operating Income	0.83	5.8%	-0.39	-31.9%	0.05	107.1%
Ordinary Income	0.83	5.8%	-0.32	-27.9%	0.05	107.3%
Net Income	0.27	1.9%	-0.41	-60.1%	0.03	114.3%

Gross profit rose 1.4% to 9.84 billion yen, but SG&A expenses increased 6.2% to 9.00 billion yen, absorbing the gross profit gain. Within cost of sales, the company notes that the material costs ratio was 13.1%, unchanged from the previous year, while labor costs increased on the rise in the number of technical staff and improved compensation. Within SG&A, personnel expenses rose on an increase in sales staff and higher incentive and compensation costs, advertising expenses rose 17.4% on enhanced strategic marketing (advertising expense ratio 4.3%, YoY +0.5pt), and other SG&A expenses rose on DX-related expenses such as device and licensing fees and on higher recruitment expenses.

Item (Billion yen)	FY2025	YoY Change	YoY Change Ratio
Net Sales	14.35	0.33	2.4%
Cost of Sales	4.51	0.19	4.5%
Material Costs	1.87	0.03	2.0%
Labor Costs	1.44	0.09	6.8%
Other Cost of Sales	1.19	0.06	5.7%
Gross Profit	9.84	0.13	1.4%
SG&A Expenses	9.00	0.52	6.2%
Personnel Expenses	5.59	0.21	4.0%
Advertising Expenses	0.61	0.09	17.4%
Other SG&A Expenses	2.79	0.23	8.6%
Operating Income	0.83	-0.39	-31.9%

Results by Service

Termite Control remained the largest service line at 43.4% of consolidated net sales, and the company states it is No. 1 in residential termite control (Source: Toyo Keizai, Kaisha Shikiho 2026, Vol.2). Anti-earthquake Measures was the only line to decline year on year.

Service	Net Sales	YoY	Share
Termite Control	¥6.2 bn	+4.8%	43.4%
Anti-earthquake Measures	¥3.3 bn	-4.4%	23.3%
Anti-humidity Measures	¥2.8 bn	+2.5%	20.2%
Others	¥1.8 bn	+7.4%	13.1%

Non-Financial Indicators and Topics

Applications for inspection rose 1,500 (+15.2%) to 11,400, which the company attributes to route expansion despite unfavorable weather, and the number of business partner companies and organizations rose 350 (+46.7%) to 1,100 at period end. The average number of staffs during the period increased 17 (+1.8%) to 997 — the first increase in three years — with 1,013 staffs at period end (+30, +3.1%), and net sales per staff was maintained at 1,200 thousand yen per month (+7, +0.6%).

Indicator	FY2025	YoY Change	YoY Change Ratio
Applications for Inspection	11,400	+1,500	+15.2%
Number of Business Partner Companies / Organizations	1,100	+350	+46.7%
Average number of staffs during the period	997	17	1.8%
Number of staffs at end of the period	1,013	30	3.1%
Sales per staff (Thousand yen/month)	1,200	7	0.6%

Topics for the year included the opening of the Kagoshima Sales Office on April 1, 2026 through a new partnership with JA in Kagoshima Prefecture, marking expansion into Kyushu; the sales area now covers 29 prefectures and 82 bases. Training center functions were consolidated into the Mikkabi Comprehensive Training Center, and due to the suspension of the Inawashiro Comprehensive Training Center an extraordinary loss of 280 million yen was recorded in the 4Q of FY2025. The service system of PCO (pest control) for residential customers also became fully operational.

Financial Position and Management Indicators

Total assets declined 0.36 billion yen to 13.97 billion yen, with non-current assets down 0.23 billion yen reflecting the 0.28 billion yen impairment of the Inawashiro Comprehensive Training Center. Total net assets were 9.60 billion yen. Cash flow from operating activities was 0.37 billion yen (FY2024: 1.12 billion yen) and free cash flow was 0.27 billion yen, with cash and cash equivalents at end of period of 6.75 billion yen.

Indicator	FY2023	FY2024	FY2025	Change (YoY)
Equity-to-asset Ratio	72.7%	67.8%	68.6%	0.8pt
Interest-bearing debt dependency	2.2%	2.5%	2.6%	0.1pt
Operating Income Ratio	6.9%	8.7%	5.8%	-2.9pt
ROA (Ratio of ordinary income to total assets)	6.4%	7.6%	5.9%	-1.7pt
ROE (Ratio of net income to shareholders’ equity)	4.6%	6.4%	2.8%	-3.6pt
EPS (Yen)	49.24	66.02	28.09	-37.94
BPS (Yen)	1,066.24	996.76	981.73	-15.03
Payout Ratio	125.9%	93.9%	220.7%	126.8pt

FY2026 Forecast and Medium-Term Management Plan (FY2026–FY2028)

Asante is transitioning from a rolling plan to a fixed three-year medium-term management plan, positioning FY2026–FY2028 as “a three-year phase to rebuild the growth foundation.” The FY2026 forecast calls for lower revenue and profit than FY2025: the company explains that revenue will decline due to improved compensation, including more annual holidays, with the number of operating days set to decrease by more than 10% compared with FY2025, while profits also decrease as costs such as higher salaries and growth investments precede the temporary top-line decline. By the final year, FY2028, the plan targets net sales of 16.90 billion yen and operating income of 1.44 billion yen with an operating income ratio of 8.5%.

Item	FY2025 (Results)	FY2026 (Forecast)	FY2028 (Plan)	Compared to FY2025
Net Sales (Billion yen)	14.35	13.66	16.90	+17.7%
Gross Profit (Billion yen)	9.84	9.13	11.57	+17.6%
Gross Profit Ratio	68.6%	66.9%	68.5%	-0.1pt
Operating Income (Billion yen)	0.83	0.20	1.44	+72.3%
Operating Income Ratio	5.8%	1.5%	8.5%	+2.7pt
Net Income (Billion yen)	0.27	0.03	0.90	+228.0%
Average number of employees during the period	997	1,042	1,174	+17.7%

The plan is built on five priority strategies: reinforcement of the sales promotion basis and structure; enhancing productivity; expansion of services from the customer’s perspective; development and utilization of human capital; and contributing to solving social issues through business activities. On sales promotion, the company aims to expand new customer revenue by 40% over three years, lifting applications for inspection from 11,400 in FY2025 to 18,000 in FY2028 (+60%) and business partners from 1,100 at end-FY2025 to 2,400 at end-FY2028 (+120%). On services, PCO net sales (BtoC) are targeted to rise from 0.13 billion yen in FY2025 to 0.9 billion yen in FY2028 (+560%). On human capital, sales staff (full-time employees, non-consolidated) are planned to grow from 350 at end-FY2025 to 470 at end-FY2028 (+120, +34%) and technical staff from 220 to 300 (+80, +36%), which the company links to consolidated net sales of +2.55 billion yen from FY2025 to FY2028. Holders of internal certifications are targeted to increase from 438 at end-FY2025 to 616 at end-FY2028.

Shareholder Returns

The FY2026 dividend forecast is 62 yen per share for the full year (31 yen interim and 31 yen year-end), unchanged in accordance with the basic dividend policy of “maintaining stable dividends.” The FY2025 payout ratio was 220.7%, and the FY2026 forecast payout ratio is shown as 1,731.2%. Asante also plans to expand its shareholder benefits program: the current gift card of ¥1,000 twice a year will be kept and discounts on the company’s services added from the record date of end of March 2027, alongside the introduction of a holding period requirement, with transitional measures for the record dates of end of September 2026 and end of March 2027.

On capital policy, the company states that its cost of equity based on CAPM is estimated at around 4-5%, with FY2025 ROE of 2.8% and PBR of 1.6 times, and sets a mid- to long-term ROE target of 10% or more. Action policies are to expand profit scale and improve profitability, to continue stable dividends while considering appropriate capital policies such as share repurchases, and to strengthen dialogue with investors.

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.