ALBIS Co., Ltd.

Business Details

albis Co., Ltd. is headquartered in Toyama Prefecture and operates a multi-store food supermarket chain across the Hokuriku and Chukyo regions as a single-segment company. Consolidated subsidiaries Aldi Japan Co., Ltd. (manufacturer of prepared foods, meat, and tofu) and albis Clean Support Co., Ltd. (recycling and outsourced operations) complement the Supermarket Business. The company is positioned as a lifeline-type retailer supporting the daily food needs of local residents, centered on fresh and non-fresh food products. Under the Fourth Medium-Term Management Plan (58th through 60th fiscal periods), the company has set "increasing albis fans" as its management policy, and is advancing five key initiatives: products, stores, human resources, systems, and community engagement.

Recent Overview

Increased revenue and operating income, but net income and equity ratio declined due to higher extraordinary losses and increased borrowings

In FY2026 (ending March 2026), the company achieved operating revenue of ¥100,952 million (up 2.8% year on year), driven by the full-year contribution of the previous period's new store (1 store) and the effects of rebuilt new stores (Ohirota and Taikoyama stores). Operating income increased to ¥2,155 million (up 4.5% year on year). However, ordinary income declined to ¥2,417 million (down 7.2% year on year) due to the disappearance of sales incentive income received (¥194 million in the prior period versus zero in the current period) and increased interest expense (from ¥40 million to ¥101 million). Loss on retirement of fixed assets of ¥358 million (versus ¥43 million in the prior period) also weighed on results, and profit attributable to owners of parent declined to ¥1,324 million (down 18.3% year on year). Long-term borrowings associated with store investment expanded to ¥8,390 million (versus ¥4,650 million in the prior period), and the equity ratio declined to 56.3% (versus 61.1% in the prior period). For FY2027 (ending March 2027), the company forecasts operating revenue of ¥103,999 million (up 3.0% year on year) and operating income of ¥2,302 million (up 6.8% year on year).

Key Products

Growth Drivers

• Expansion of operating revenue through the planned rebuild opening of the "Fukuoka Ekimae Store" (formerly the Tapis store) in autumn 2026 and large-scale renovations of aging stores and flagship store remodeling
• Maintaining and expanding the customer base through PB product expansion, development of high-value-added products, and initiatives such as the Shokutaku Ouen campaign and Hapimaru (5% discount for child-rearing households)
• Strengthening in-house manufacturing capability and store profitability through full-scale operation of the seafood process center, enabling in-house production of fish-based prepared foods and primary processing
• Improved productivity and cost reduction through the introduction of electronic shelf labels (ESL) and standardization/efficiency improvements in store operations
• Expansion of new customer touchpoints through digital marketing (albis Online Shop, official EC site)
• Enhancement of community-based brand value through comprehensive partnership agreements with local governments (e.g., Nonoichi City, Ishikawa Prefecture) and the Mobile Supermarket service (24 vehicles)

Risks

• Downward pressure on gross margin due to strengthening consumer cost-consciousness and intensifying competition across industry categories
• Increased selling, general and administrative expenses due to wage increases (personnel expenses: salaries and allowances of ¥10,203 million, versus ¥9,845 million in the prior period), persistently high utility costs, and rising logistics costs
• Downward pressure on ordinary income due to structural decline in non-operating income, including the disappearance of sales incentive income received (¥194 million in the prior period to zero in the current period)
• Increased financial burden and declining equity ratio due to higher depreciation expenses associated with new store and rebuild investments (¥2,340 million, versus ¥2,017 million in the prior period) and expanded long-term borrowings (¥8,390 million, versus ¥4,650 million in the prior period)
• Impact on earnings from persistently high raw material prices and electricity costs, as well as external environmental changes such as U.S. trade policy
• Impact (cannibalization) on existing stores near rebuilt new stores, and loss of sales opportunities during temporary store closure periods