OOMITSU CO.,LTD. Q4 FY2025 earnings call

• Overall Financial Results

  • Consolidated revenue for the 2025 May term hit 74.88 billion yen, a 6.2% YoY increase, marking a new all-time high, with all three segments reporting revenue growth.
  • Operating profit fell 25.2% YoY to 811 million yen, ordinary profit fell to 845 million yen, and net profit attributable to parent company shareholders fell to 523 million yen. Profit declines were driven by rising personnel, utility, and depreciation expenses, partially offset by an 835 million yen increase in gross profit from higher revenue.
  • A 394 million yen special gain was recorded from a damages settlement with Tokyo Electric Power Company Holdings for losses from import bans on Japanese seafood related to ALPS treated water discharges, while a 536 million yen special loss was recorded for impairment losses.

• Market Environment and Recovery

  • After COVID-19 was downgraded to category 5 in May 2023, the food service industry has recovered steadily, driven by growing inbound demand, increased foot traffic to dining and tourism locations, and more active corporate activity. Daiko's total revenue has recovered to exceed pre-COVID levels and continued growing in the 2025 May term.

• Core Business Strengths and Structure

  • Daiko operates three complementary business segments that cover the full range of food service customers: large-scale food service clients served by the Gaiko segment, small-scale food service operators and general consumers served by the Amica professional food supermarket chain, and specialty shellfish sales via the Marine Delica seafood subsidiary.
  • Daiko offers three private brand (PB) lines (O!Marche, Pro's Choice, JFDA) with roughly 200 SKUs covering frozen vegetables, prepared frozen foods, seafood, and livestock products, with strict in-house quality control standards for safety and consistent quality.
  • The Amica chain operates 52 stores across 1 prefecture and 7 regions as of the end of May 2025, focused on professional food service customers with wide product assortments, wholesale-style functions, and open access for general consumers, which has benefited from growing consumer demand for affordable bulk frozen and commercial food amid rising prices.

• Balance Sheet and Cash Flow

  • Total assets at term end stood at 27.459 billion yen, total liabilities at 21.082 billion yen, and net assets at 6.376 billion yen. Cash and cash equivalents decreased by 50 million yen to 534 million yen, driven by outflows from operating activities from rising receivables and inventory, and outflows from investment for fixed asset purchases, offset by inflows from financing via new borrowings.

1. Gaiko (Foreign Trade) Business: Revenue of 49.454 billion yen, 8.4% YoY increase (3.842 billion yen increase from prior year), contributing 66% of total consolidated revenue. Operating profit was 668 million yen, a 12.5% YoY increase (74 million yen increase from prior year). Growth came from 3.112 billion yen in increased revenue from existing customers and 730 million yen from new customers. 2. Amica Business: Revenue of 23.245 billion yen, 0.4% YoY increase (102 million yen increase from prior year), contributing 31% of total consolidated revenue. Operating profit was 1.28 billion yen, a 31.5% YoY decrease (589 million yen decrease from prior year). Existing stores saw a 352 million yen revenue decline, offset by 351 million yen from new stores and 103 million yen from the online shop. Two new stores were opened in the term. 3. Seafood Products Business: Revenue of 2.375 billion yen, 23.4% YoY increase (450 million yen increase from prior year), contributing 3% of total consolidated revenue. Operating profit was 32 million yen, a 349 million yen YoY increase from prior year. Growth came from 269 million yen in increased shellfish sales and 144 million yen from export sales, driven by new sales routes to non-Chinese markets after prior Chinese import bans.

• For the 2026 May full term, Daiko projects total consolidated revenue of 79.3 billion yen (a new all-time high, with all three segments targeting revenue growth), operating profit of 890 million yen, ordinary profit of 900 million yen, and net profit attributable to parent company shareholders of 580 million yen, with planned profit growth despite expected continued cost increases for personnel and logistics.
  • Gaiko Business guidance: The company will deepen transactions with existing clients, pursue new client development, expand PB product sales to improve gross margin, and continue initiatives to cut logistics costs via delivery route and frequency reviews and warehouse operational efficiency improvements.
  • Amica Business guidance: Two new stores are planned to open in the term. The chain will expand product assortments suited for home consumption to grow general consumer sales, increase promotional activity via social media, and improve logistics efficiency for existing store networks and the new distribution center.
  • Seafood Products Business guidance: The company will deepen transactions with key existing clients including conveyor belt sushi chains, food manufacturers, and mass merchant wholesalers. Exports to China have resumed, with strong incoming demand expected, and the company plans to ship domestically produced scallops to China in line with demand.
  • Dividend guidance: Daiko maintains its core policy of progressive dividends targeting a 3.0%+ return on equity. The 2025 May term full-year dividend is 14 yen per share (DOE of 3.4%), and a fourth consecutive annual dividend increase to 15 yen per share is planned for the 2026 May term.

• Sustained cost inflation for personnel, electricity, logistics, and other operating expenses continues to pressure profit margins, even with revenue growth. Amica is particularly exposed to high electricity costs due to its reliance on cold storage equipment for frozen food inventory.
  • Consumer demand trends: Amica faced weaker foot traffic and soft same-store sales in the 2025 May term due to a post-reopening demand hangover and rising consumer cost sensitivity that offset new store growth, leading to only marginal total revenue growth for the segment.
  • Seafood trade policy risk: The segment faced major losses in prior terms from Chinese import bans on Japanese scallops related to ALPS treated water, though bans have been lifted as of the 2026 term guidance period.

No question and answer section was included in the provided transcript.