Kobe Bussan (3038): May: SSS above expectations, but profit weak on FX and one-off factors

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Kobe Bussan (3038): May: SSS above expectations, but profit weak on FX and one-off factors

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Kobe Bussan (3038)

May: SSS above expectations, but profit

weak on FX and one-off factors

Reiterate Rating: BUY | PO: 3,600 JPY | Price: 2,611 JPY

May profit below expectations on one-off factors 23 June 2026

Kobe Bussan announced its May parent results (YoY) after the market close on Jun 23: Equity

sales +3.0%, gross profit -5.3%, SG&A expenses +16.3%, and OP -16.5%, indicating

weak profit. Arashi Nishizawa >> Research Analyst

BofAS Japan

SSS +1.7%, solid given high hurdle and calendar impact +81arashi.nishizawa@bofa.com3 6225 6402

May same-store sales rose 1.7%, which we view as solid given the high hurdle from the Daisuke Aikawa >>

previous year (+8.3% in May 2025) and an unfavorable calendar impact (one fewer Research Analyst

Sunday). Sales appear to have been driven by monthly promotional items as well as BofAS+81 3 6225Japan7196

selected “bomb price” items offered irregularly at particularly attractive prices. daisuke.aikawa@bofa.com

Maintenance and yen weakness weighed on gross margin

May gross margin declined to 9.97% from 10.52% in April. While scheduled maintenance Stock Data

at the biomass power plant, conducted every few years, had an impact, the negative

impact from yen weakness also appears to have become more pronounced. M&A-related Price 2,611 JPY

expenses also continued to be recorded in SG&A expenses. Price Objective 3,600 JPY

Date Established 12-Jun-2026

Estimates (¥) 10/24A 10/25A 10/26E 10/27E 10/28E Investment Opinion B-1-7

Other GAAP Other GAAP Other GAAP Other GAAP Other GAAP 52-Week Range 2,516-4,665 JPY

EPS 97.09 143.98 143.43 145.23 155.60

Market Value (mn) 714,370 JPY

EPS Change (YoY) 3.7% 48.3% -0.4% 1.3% 7.1%