SAN-A CO., LTD. (2659): FY2025 Results Summary — Operating Profit Edges Higher While Profit Comes In at 93.1% of the Prior Year

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

Note: this site labels every company’s most recently completed fiscal year “FY2025”. SAN-A CO., LTD. closes its books at the end of February, so the year covered here is the fiscal year ended February 28, 2026, which the company’s own materials call the fiscal year ended February 2026; all labels, units and figures in the text and tables below are kept as they appear in the presentation. For that year SAN-A, the Okinawa-based retailer, posted operating revenue of 245,548 million yen (103.5% year on year) and operating profit of 17,070 million yen (100.9% year on year, up 146 million yen). Ordinary profit was 17,768 million yen (101.7%), while profit attributable to owners of parent was 10,678 million yen, or 93.1% of the previous year’s 11,469 million yen. Results fell short of the company’s own budget across the profit lines, at 97.0% to 99.8% of plan.

Consolidated Results (Full-Year Actual)

The presentation’s consolidated table sets the actual result for the fiscal year ended February 28, 2026 against both the company’s budget for that year and the prior-year actual. Note that the table contains two lines that are both labelled “Operating revenue”: the first is the consolidated top line of 245,548 million yen, and the second, shown between gross profit and selling, general and administrative expenses, is 20,062 million yen (8.9% of net sales, 108.1% year on year), which the company attributes to strong performance by its consolidated subsidiaries. Gross profit was 70,973 million yen on a gross margin of 31.5%, against 31.7% in the previous fiscal year, and SG&A expenses rose to 73,966 million yen (104.4% year on year, 99.6% of budget) on higher personnel expenses from wage hikes and expanded hiring and higher administrative expenses from new store openings, renovations of comparable stores and investment in DX, partly offset by lower electricity consumption following the replacement of equipment with energy-efficient models and a cooler summer.

The company gives two reasons for falling short of its budget: the impact of temperature and a reduced number of operating days due to renovations, amounting to a total of 81 days of closure at six stores; and a decline from strong sales in the previous year (June to January) driven by the prefecture’s “Switching to Energy-efficient Home Appliances Campaign”.

Item (Million yen, %)	FY ended Feb 28, 2026 (Actual)	Sales ratio	YoY	Comparison with budget	FY ended Feb 28, 2026 (Forecast)	FY ended Feb 28, 2025 (Actual)
Operating revenue	245,548	–	103.5	99.1	247,876	237,156
Net sales	225,485	–	103.2	98.6	228,575	218,592
Gross profit	70,973	31.5	102.5	98.3	72,177	69,241
Operating revenue	20,062	8.9	108.1	103.9	19,301	18,564
Selling, general and administrative expenses	73,966	32.8	104.4	99.6	74,251	70,882
Operating profit	17,070	7.6	100.9	99.1	17,227	16,923
Ordinary profit	17,768	7.9	101.7	99.8	17,796	17,468
Profit (attributable to owners of parent)	10,678	4.7	93.1	97.0	11,005	11,469

Sales ratios for the fiscal year ended February 28, 2025 were 31.7% for gross profit, 8.5% for the second “Operating revenue” line, 32.4% for SG&A expenses, 7.7% for operating profit, 8.0% for ordinary profit and 5.2% for profit attributable to owners of parent.

Net Sales by Department

Department-level net sales are disclosed on a basis that assumes the “Accounting Standard for Revenue Recognition” and related standards have not been applied, which is why the departmental total of 232,273 million yen differs from consolidated net sales. Food remained by far the largest department at 154,356 million yen, or 66.5% of the total, and only Household Goods failed to reach the prior-year level at 99.7%. CVS in the table is sales at directly managed convenience stores; the company notes that CVS sales including franchise stores exceeded those of the previous year.

Department (Million yen, %)	Amount	Composition ratio	YoY (Total)	YoY (Comparable store sales)
Clothing	34,902	15.0	105.6	106.1
Food	154,356	66.5	103.4	103.8
Household Goods	32,315	13.9	99.7	100.0
Restaurants	10,408	4.5	107.2	106.5
Sub-total (Retail Department)	231,983	99.9	103.4	103.7
CVS	289	0.1	98.1	98.1
Net sales total	232,273	100.0	103.4	103.7

Okinawa Operating Environment

The presentation devotes a section to conditions in Okinawa Prefecture. The total number of visitors from January to December 2025 was 10.75 million, at 111.2% of the previous year and 105.8% of 2019, a record high, with 7.92 million domestic visitors (105.1% year on year, 109.5% versus 2019) and 2.83 million foreign visitors (132.9% and 96.8%). The prefecture’s population was 1,467 thousand as of March 1, 2026, up 0.02% year on year, and Okinawa’s total fertility rate of 1.54 in 2024 compares with 1.15 nationwide. On employment, the unemployment rate in February 2026 was 3.2% against 2.3% in the same month a year earlier (a change of +0.9), the active job openings rate was 1.08 times against 1.09 times (a change of △0.01), and the number of workers was 784 thousand against 769 thousand (+15).

Forecast for the Fiscal Year Ending February 28, 2027

For the year ending February 28, 2027 the company plans operating revenue of 257,270 million yen (104.8% year on year), operating profit of 17,527 million yen (102.7%, up 456 million yen) and profit attributable to owners of parent of 11,025 million yen (103.3%). Gross profit is planned at 74,681 million yen on a gross profit margin of 31.6%, against 31.5% in the previous fiscal year. The company cites an increase in logistics expenses within selling expenses, regular salary raises, base salary increases and minimum hourly wage increases within personnel expenses, and renovation of large stores plus investment in DX (depreciation and EDP expenses) within administrative expenses. Extraordinary losses are planned at 211 million yen, down from 1,167 million yen, reflecting costs related to the demolition and restoration of closed facilities and a decrease compared with the previous fiscal year’s demolition costs for Ishigaki City (old building) and Ohyama City. EBITDA, defined by the company as operating profit plus depreciation (declining-balance method), is planned at 25,061 million yen.

Item (Million yen, %)	FY ending Feb 28, 2027 (Plan)	Sales ratio	YoY	FY ended Feb 28, 2026 (Actual)	Sales ratio
Operating revenue	257,270	–	104.8	245,548	–
Net sales	236,561	–	104.9	225,485	–
Gross profit	74,681	31.6	105.2	70,973	31.5
Operating revenue	20,709	8.8	103.2	20,062	8.9
Selling, general and administrative expenses	77,864	32.9	105.3	73,966	32.8
Operating profit	17,527	7.4	102.7	17,070	7.6
Ordinary profit	17,975	7.6	101.2	17,768	7.9
Extraordinary losses	211	0.1	18.1	1,167	0.5
Profit (attributable to owners of parent)	11,025	4.7	103.3	10,678	4.7
EBITDA	25,061	10.6	104.5	23,992	10.6

The plan is split between the first half and the full year, with the figures in parentheses showing the percentage change. Comparable store net sales are forecast at 104.4% in the first quarter, 106.6% in the second, 101.6% in the third, 104.1% in the fourth and 104.2% for the full year; the company notes that the second- and third-quarter figures take account of the month difference caused by Okinawa’s Lunar Bon Festival, which falls on August 25-27 this fiscal year against September 4-6 in the previous fiscal year.

Period (Million yen, change in %)	Operating revenue	Operating profit	Ordinary profit	Profit attributable to owners of parent
Six months ending August 31, 2026	129,789 (6.2)	9,026 (3.7)	9,353 (2.7)	5,887 (0.2)
Full year	257,270 (4.8)	17,527 (2.7)	17,975 (1.2)	11,025 (3.3)

Shareholder Returns

For the fiscal year ended February 28, 2026 SAN-A set a year-end dividend of 125 yen per share, made up of an ordinary dividend of 100 yen and a commemorative dividend of 25 yen marking the 25th anniversary of the company’s IPO. For the fiscal year ending February 28, 2027 the company forecasts a year-end dividend of 110 yen per share. It has also resolved on an acquisition of treasury shares with a maximum cost of 15 billion yen and a maximum of 7 million shares, over an acquisition period running from April 8, 2026 to February 26, 2027.

New Food Processing Center and New Head Office

SAN-A has decided to invest approximately 54 billion yen in a new Food Processing Center and new Head Office, describing the move as transforming its cash reserves into growth drivers aimed at improving productivity and expanding the business. The existing center faces limited production capacity, which the company says results in lost opportunities, and decreased work efficiency after repeated floor space expansions made workflow paths more complex. The new facility is to be built on company-owned land in Oyama, Ginowan City, Okinawa Prefecture, on a site of 23,850.81 square metres, financed by the company’s own funds, loans and other sources, with construction starting in February 2026 and operations scheduled to start in September 2028. Planned floor space is approximately 25,000 square metres for the Food Processing Center and Head Office, approximately 11,000 square metres for the Head Office and approximately 13,000 square metres for multi-story parking. The company targets a 90% increase in the number of packs and a 7% reduction in personnel expenses, and sets 2035 targets of a 1.6 times increase in meat and fresh fish sales (+60% versus 2025) and a 2.0 times increase in ready-to-eat meals sales (+100% versus 2025).

Topics for the Year

During the fiscal year SAN-A opened the San-A Mekaru store in Naha City on January 24, 2026, a complex consisting of a grocery store and a drug store, completed the reconstruction of Ishigaki City with a grand reopening in June 2025 and parking lot completion in March 2026, and closed Machinato City, a general store, in October 2025, 40 years after its opening. Six existing stores were renovated, comprising one large store and five grocery stores. The company obtained an issuer rating of A [Stable] from Rating and Investment Information, Inc. (R&I) on January 16, 2026, and announced a new store message and English logo, “‘Just Right’ and ‘Even Better’ for daily life in Okinawa”, on New Year’s Day 2026. Other initiatives included the sale of stockpiled rice under a discretionary contract with the Ministry of Agriculture, Forestry and Fisheries as one of the first 61 companies, procuring 2,300 tons of rice harvested in 2022 with nearly all of it sold out by the end of August 2025; the launch of Nintendo product sales from June 2025; and the opening of the prefecture’s first Soup Stock Tokyo store at Urasoe PARCO CITY. On structural capabilities, full self-checkout systems were installed at 31 grocery stores and self-service checkout registers were installed in all 60 stores where feasible. From March 2026 the company is changing its organizational system, introducing a headquarters system and an executive officer system and newly establishing a Management Strategy Dept, a Sustainability Promotion Office, a Logistics Dept, a Digital Transformation Promotion Office and a Diversity Promotion Office.

As of February 28, 2026 SAN-A operated 78 stores on a non-consolidated basis: on mainland Okinawa, 20 general stores, 1 clothing and household goods store, 43 food stores, 7 restaurants and 2 drugstores; on Miyako Island, 2 general stores, 1 food store and 1 restaurant; and 1 general store on Ishigaki Island. Convenience stores on mainland Okinawa comprised 1 directly managed store and 268 franchise stores. The company had 1,819 employees as of the same date, including employees seconded from the company to Group companies, and its consolidated subsidiaries are Lawson Okinawa, Inc., SAN-A Urasoe West Coast Development Co., Ltd. and SAN-A PARCO, Inc.

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.