Japan's Adastria reports $515.4 mn in Q3 revenue, up 7.9%

Of the total sales, Adastria (non-consolidated) sales went up by 6.7 per cent YoY to ¥58,764 million. Domestic subsidiaries accounted for ¥8,125 million, reflecting a robust 17.2 per cent YoY growth, while Overseas subsidiaries recorded ¥5,843 million, a 2.3 per cent YoY decline, Adastria said in a press release.

SG&A Expenses increased by 9.4 per cent YoY to ¥37,722 million, representing 49.7 per cent of net sales. Advertising and promotion expenses slightly decreased to ¥2,495 million, down 2.7 per cent YoY. Personnel expenses rose to ¥13,756 million, up 11.9 per cent, while rent and depreciation costs grew to ¥13,539 million, a 10.7 per cent increase.

Operating Profit declined to ¥4,854 million, with an operating margin of 6.4 per cent, a decrease of 2.1 ppts YoY. Adastria (non-consolidated) contributed ¥4,219 million to operating profit, down 19.2 per cent YoY. Domestic subsidiaries, however, posted ¥844 million in operating profit, reflecting a significant 81.8 per cent YoY growth.

Ordinary profit was reported at ¥4,650 million, down 2.5 ppts YoY. Net income attributable to owners of the parent company decreased to ¥2,958 million, with a net margin of 3.9 per cent, representing a decline of 2.4 ppts YoY. EBITDA for the quarter was ¥7,741 million, with a margin of 10.2 per cent, down 1.7 ppts YoY. Depreciation and amortisation expenses increased to ¥2,774 million, a 19.0 per cent YoY rise.

Nine-month (9M) financials

Adastria Group reported net sales of ¥220.1 billion in the 9M of FY25, reflecting a robust 8.3 per cent year-over-year (YoY) increase. Gross profit amounted to ¥122,897 million, with a gross margin of 55.8 per cent, a slight decrease of 0.9 percentage points (ppts) YoY.

Adastria (non-consolidated) contributed ¥173,775 million, a 7.5 per cent YoY rise, while domestic subsidiaries achieved ¥20,486 million, marking an impressive 11.2 per cent YoY growth. Overseas subsidiaries posted ¥18,101 million, an 8.6 per cent YoY increase.

SG&A expenses increased by 9.2 per cent YoY to ¥108,127 million, accounting for 49.1 per cent of net sales. Advertising and promotion expenses slightly decreased to ¥6,454 million, down 1.1 per cent YoY. Personnel costs rose by 10.7 per cent to ¥40,092 million, while rent and depreciation expenses grew by 10.3 per cent to ¥38,435 million.

Operating profit for the nine-month period was ¥14,770 million, representing 6.7 per cent of net sales, a decline of 1.3 ppts YoY. Adastria (non-consolidated) contributed ¥13,583 million, down 6.4 per cent YoY, while Domestic subsidiaries saw a notable increase in operating profit to ¥1,243 million, up 113.1 per cent YoY. However, overseas subsidiaries reported a lower operating profit of ¥283 million, a significant decline of 64.2 per cent YoY.

Ordinary profit stood at ¥14,967 million, with a margin of 6.8 per cent, reflecting a decrease of 1.4 ppts YoY. Net income attributable to owners of the parent company was ¥9,907 million, with a margin of 4.5 per cent, down 1.2 ppts YoY.

EBITDA reached ¥22,881 million, with a margin of 10.4 per cent, down 0.9 ppts YoY. Depreciation and amortisation costs increased to ¥7,836 million, up 20.6 per cent YoY.

Outlook

For the full fiscal 2025, Adastria Group projects net sales to reach ¥290 billion (~$1.972 billion), a 5.2 per cent YoY increase compared to ¥275.6 billion in FY24. Gross profit is expected to rise by 6.5 per cent to ¥162,300 million, with the gross profit margin improving by 0.7 percentage points (ppts) to 56.0 per cent.

SG&A expenses are forecast at ¥143,300 million, a 6.7 per cent YoY increase, representing 49.4 per cent of net sales, up 0.7 ppts. Operating profit is projected to grow by 5.5 per cent to ¥19,000 million, resulting in an operating margin of 6.6 per cent, a slight increase of 0.1 ppts. Ordinary profit is expected to rise by 3.3 per cent to ¥19,000 million, maintaining an ordinary income margin of 6.6 per cent, slightly lower by 0.1 ppts.

ALCHEMPro News Desk (SG)