DAYTONA CORPORATION Q4 FY2025 earnings call

• Overall 2025 Fiscal Year Performance

  • Reported consolidated revenue decreased 1.4% year-over-year to 14.376 billion yen, and reported operating profit decreased 6.1% year-over-year to 1.61 billion yen. The primary driver of the reported decline is a 3-month shortening of the fiscal period for the Indonesian subsidiary due to a fiscal year change.
  • On a normalized 12-month basis, consolidated revenue increased 3% year-over-year and operating profit increased 5% year-over-year. The Asia base wholesale business remained strong through the period, with underlying performance not reflected in the reported headline figures.

• Domestic Base Wholesale Business Strategic Initiatives

  • The business will continue to pursue growth through both physical retail and e-commerce channels.
  • For physical retail partners, the company will share growth strategies and deliver customized product and store layout proposals tailored to each individual outlet.
  • For e-commerce, the company will focus on SEO optimization, explore new AI-powered user tools, improve information navigation for customers, and expand sales of riding gear products, targeting 5% revenue growth year-over-year.

• Asia Base Wholesale Business Expansion Plans

  • The company targets further sales channel expansion across high-growth Southeast Asian countries with large motorcycle populations.
  • In Indonesia, the 2020 shift from agent-based sales to direct sales to retail outlets has driven strong sales growth. For 2026, the company plans to expand its network to 5,000 partner retail outlets.
  • In the Philippines, the company divided operations into 5 sales regions, appointed agent partners, and built a network of roughly 600 retail outlets covering nearly the entire country in 2025. For 2026, the company is evaluating adding one additional agent partner and plans to expand the outlet network to 1,500 locations.
  • The company will test export sales to neighboring countries to explore future expansion into additional markets.

1. Domestic Base Wholesale Business: Revenue increased 0.8% year-over-year to 10.49 billion yen; operating profit decreased 2.7% year-over-year to 1.052 billion yen. It accounts for approximately 73% of total consolidated revenue.
2. Asia Base Wholesale Business: Total revenue decreased 7.9% year-over-year to 1.554 billion yen; total operating profit decreased 18% year-over-year to 0.339 billion yen. When adjusted to a full 12-month period, revenue increased 41% year-over-year and profit tripled year-over-year. It accounts for approximately 10.8% of total consolidated revenue.
3. Retail Business: Revenue decreased 5.6% year-over-year to 2.141 billion yen; operating profit increased 10.6% year-over-year to 0.133 billion yen. It accounts for approximately 14.9% of total consolidated revenue.
4. Other Businesses: Revenue decreased 5.7% year-over-year and profit decreased 13% year-over-year. The solar power generation segment delivered growth in both revenue and profit supported by stable sunshine hours, while the reuse sales segment faced declining revenue and profit due to stagnant growth in used product procurement.

• Consolidated 2026 December Fiscal Year Guidance: Targets 8.3% year-over-year revenue growth to 15.566 billion yen, and 7.8% year-over-year operating profit growth to 1.736 billion yen. Growth is driven by continued strong sales in the Asia segment and the return to a full 12-month fiscal period for the Indonesian subsidiary.
• Segment-level 2026 Guidance:
  • Domestic Base Wholesale Business: Targets approximately 5% year-over-year revenue growth to 11.007 billion yen, and approximately 9% year-over-year profit growth to 1.143 billion yen, driven by expanded market share across both physical and e-commerce channels.
  • Asia Base Wholesale Business: Targets approximately 57% year-over-year revenue growth to 2.439 billion yen, and approximately 26% year-over-year profit growth to 0.429 billion yen, driven by the full 12-month fiscal period for Indonesia, outlet network expansion, continued new product launches, and growth from expanded operations in the Philippines.
  • Retail Business: Expects continued declines in store foot traffic due to shifting consumer behavior and rising prices, so the segment forecasts lower revenue and profit. While the company will strengthen service operations to maintain margins, it plans to prioritize upfront investment in mechanic talent recruitment and training in 2026, leading to the projected decline.
  • Other Businesses: Targets growth in both revenue and profit, supported by stable earnings from solar power generation, plus expanded supply chains and strengthened direct-to-consumer sales in the reuse sales segment.
• Dividend Guidance: The company plans to increase the 2025 fiscal year dividend by 15 yen to 150 yen per share, and maintains this 150 yen per share dividend as the planned payout for the 2026 fiscal year, factoring in growth plans and past investment returns.

• Multiple external uncertainty factors create difficulty for forward-looking forecasting at the current stage, including: foreign exchange rate fluctuations, impacts of US tariff measures, unstable global geopolitical conditions, shifts in consumer spending trends, and weather-related disruptions.
• If any of the above factors change materially and are expected to have a large impact on operating performance, the company will issue an updated revision to its forward-looking guidance.

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