AEON Hokkaido Corporation (7512): FY2025 Results Summary — Record Net Sales as the Seiyu Store Takeover Lifts Sales and Profit

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

Note: AEON Hokkaido Corporation 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. The company closes its books at the end of February, and the fiscal year covered here ran from March 2025 to February 2026 (the company calls it fiscal 2025). AEON Hokkaido’s consolidated results for the fiscal year ended February 2026 (March 2025 to February 2026) were net sales of 380,063 million yen (107.4% of the previous fiscal year), gross operating profit of 119,423 million yen (105.8%), operating profit of 8,332 million yen (105.6%), ordinary profit of 8,028 million yen (100.1%), and net income of 3,732 million yen (103.5%), for higher sales and higher profit, with net sales reaching a record high. The takeover of nine Seiyu stores expanded the company’s share in the Sapporo area, and the discount store (DS) business was firm. Against the forecast the company had announced at the start of the fiscal year, however, operating profit came to 85.0% of the forecast, ordinary profit 84.5%, and net income 74.6%.

Consolidated Results (Fiscal Year Ended February 2026, Actual)

Net sales increased by 26,044 million yen year on year on the contribution of the stores taken over from Seiyu and growth at existing stores. Gross operating profit rose by 6,533 million yen, as growth in gross profit was joined by higher tenant income from tenant recruitment led mainly by the developer division. SG&A expenses increased by 6,093 million yen on aggressive investment in people such as personnel costs, but were controlled within plan through productivity improvements and a review of the cost structure, and operating profit secured a year-on-year increase of 439 million yen.

Item	Actual for the fiscal year	YoY (change)	vs. announced forecast (change)
Net sales	380,063 million yen	107.4% (+26,044 million yen)	99.5% (-1,936 million yen)
Gross operating profit	119,423 million yen	105.8% (+6,533 million yen)	–
Operating profit	8,332 million yen	105.6% (+439 million yen)	85.0% (-1,467 million yen)
Ordinary profit	8,028 million yen	100.1% (+8 million yen)	84.5% (-1,471 million yen)
Net income	3,732 million yen	103.5% (+125 million yen)	74.6% (-1,267 million yen)

Results by Business Format (Fiscal Year Ended February 2026)

Net sales grew in every business format: the GMS business, the SM business and the DS business. In the GMS and SM businesses, the year-end and New Year selling season was strong in the fourth quarter and customer numbers recovered, while the DS business grew steadily by responding to needs amid a continued preference for thrift.

Business format	Net sales (actual)	YoY	Existing stores YoY
GMS business	209,825 million yen	107.8%	101.0%
SM business	110,326 million yen	104.4%	101.9%
DS business	64,502 million yen	110.8%	103.7%

Full-Year Forecast (Fiscal 2026, the Fiscal Year Ending February 2027)

The company has announced a forecast for fiscal 2026 (the fiscal year ending February 2027) of net sales of 392,000 million yen (+3.1% year on year), operating profit of 8,700 million yen (+4.4%), ordinary profit of 8,200 million yen (+2.1%), and net income of 3,000 million yen (-19.6%). On an existing-store basis it expects net sales of 103.3%, a gross margin improvement rate of +0.2pts, and SG&A expenses of 104.0%.

Item	Fiscal 2025 actual	Fiscal 2026 forecast	Change
Net sales	380,063 million yen	392,000 million yen	+3.1%
Operating profit	8,332 million yen	8,700 million yen	+4.4%
Ordinary profit	8,028 million yen	8,200 million yen	+2.1%
Net income	3,732 million yen	3,000 million yen	-19.6%

Shareholder Returns

The dividend for the fiscal year ended February 2026 is 16 yen (a payout ratio of 59.7%). The company plans to continue a dividend of 16 yen for fiscal 2026 (the fiscal year ending February 2027) as well, with a payout ratio expected at 74.2%.

Medium-Term Management Plan

Following the 2020 management integration of AEON Hokkaido and Maxvalu Hokkaido and the 2025 succession to Seiyu’s Hokkaido business, a new five-year medium-term management plan running from fiscal 2026 to fiscal 2030 has started. Under the previous medium-term management plan (fiscal 2021 to fiscal 2025) the company achieved its target of 380.0 billion yen in directly managed sales, while operating profit came to 8.3 billion yen against a target of 15.7 billion yen, a shortfall of 7.4 billion yen, and ROE was 5.1% against a target of 10% or more, a shortfall of -4.9pt. The reasons cited are surging utility and other costs and a rise in the personnel expense ratio due to aggressive wage increases. The new medium-term management plan calls for 70.1 billion yen of store investment and 12.3 billion yen of infrastructure investment over the five years, for total planned investment of 82.4 billion yen, and states that it will put operating profit back on a recovery track. Fiscal 2026, the first year of the plan, is positioned as a year of “challenge”, with efforts focused on three items: the evolution of each business format, reform centered on merchandise, and the building of a strong business foundation.

Item	Fiscal 2030 target	Difference vs. fiscal 2025
Directly managed sales	440.0 billion yen or more	+60.0 billion yen or more
(of which) Food	370.0 billion yen or more	+57.0 billion yen or more
Operating profit	11.0 billion yen or more	+2.7 billion yen or more
ROE	6.0% 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.