ASKUL (2678) Q1 2027 earnings summary

Executive summary

• Consolidated net sales for Q1 FY5/2027 were ¥112.3 billion, down 8.2% year-over-year, reflecting ongoing recovery from a prior ransomware attack and challenging market conditions.

• Operating loss was ¥418 million, compared to a ¥1.05 billion profit in Q1 FY5/2026; loss attributable to owners of parent was ¥508 million versus a profit of ¥344 million a year earlier.

• Structural reforms are progressing, with improvements in gross profit margin, variable logistics cost ratio, and fixed cost ratio.

• AI-driven sales and marketing initiatives, cost reductions, and operational efficiency are being prioritized for medium- to long-term growth.

• Q2 onward is expected to be pivotal for returning to growth, with accelerated execution of key strategies.

Financial highlights

• Q1 FY5/2027 consolidated net sales: ¥112.3 billion, down 8.2% year-over-year.

• Gross profit: ¥26.2 billion, down 13.7% year-over-year; gross profit margin: 23.3%, down 1.5 percentage points.

• Operating profit: -¥418 million (loss), compared to ¥1.05 billion profit in Q1 FY5/2026.

• Ordinary profit: -¥452 million; profit attributable to owners of parent: -¥508 million.

• SG&A expenses: ¥26.6 billion, down 9.1% year-over-year; ratio to net sales: 23.7%.

• Comprehensive income was negative ¥412 million, compared to ¥426 million in the prior year.

• Basic earnings per share was negative ¥5.68, down from ¥3.73 in the previous year.

Outlook and guidance

• Full-year forecast for FY5/2027 remains unchanged: net sales of ¥490 billion (+22.4% YoY), operating profit of ¥7 billion, ordinary profit of ¥6.3 billion, and profit attributable to owners of parent of ¥4 billion (EPS: ¥44.68).

• Dividend forecast is ¥20 per share for the year, unchanged from previous guidance.

• Recovery in EBITDA is expected in FY5/2027, with Q2 and beyond seen as a turning point for growth.

• Full-year sales aim to return to pre-cyberattack levels.

• Medium-term strategy targets original products to reach 50% of sales by FY5/2032.