ENVALITH
株式会社G-7ホールディングス logo

G-7 HOLDINGS Inc.

7508・Prime Market・Retail Trade

Official website
株式会社G-7ホールディングス logo
G-7 HOLDINGS Inc.7508

Business

G-7 Holdings is a multi-format retail holding company originating in Hyogo Prefecture. Its core business is the Gyomu Super Business (operating 223 franchise stores), followed by the Automotive-Related Business through Autobacs franchise stores (71 stores), the specialty meat retailer "Oniku no Terabayashi" (191 stores), and Others including food wholesaling, direct farm produce sales, and mini supermarkets. Consolidated net sales for FY2026 (ending March 2026) were ¥232,199 million. The company targets both general consumers and business-use customers, building a community-based store network centered on low prices and convenience. It has also established local subsidiaries in Southeast Asia and is expanding overseas, including the rollout of Bike World stores in Malaysia (20 stores).

Business Model

In the Gyomu Super Business, the company pays a fixed percentage of purchase amounts as royalties under its franchise agreement with Kobe Bussan, while attracting customers with low-priced private-brand products. In the Automotive-Related Business, the company operates as an Autobacs Seven franchisee, providing accessory sales and maintenance services, and bears royalties proportional to sales. The Meat Business builds up earnings through multi-store expansion of directly-operated stores and the incorporation of upstream functions via M&A. Each business relies mainly on revenue growth from new store openings as its growth engine, maintaining a structure in which capital expenditures are funded by operating cash flow.

Company Strengths

Since becoming an FC member in 2002, G-7 Supermarket has grown to operate 223 stores as of the end of FY2026 (ending March 2026), making it one of the largest franchisees in the Gyomu Super chain. Through continued store openings in Hokkaido, Chubu, Kinki, and Kyushu, it has expanded its trading area, and in FY2026 (ending March 2026), sales in the Gyomu Super Business reached ¥132,840 million, accounting for approximately 57% of consolidated sales, growing into the company's core business.

Starting with the acquisition of Terabayashi Co., Ltd. shares in 2015, the company has continued M&A activity in the meat sector, and in October 2025 made Meat Planning Co., Ltd., which handles beef tongue processing and wholesale sales, a consolidated subsidiary. By incorporating upstream functions, the company strengthened its cost competitiveness, achieving high growth in FY2026 (ending March 2026) with Meat Business sales of ¥24,091 million (+14.6% year on year) and ordinary income up 25.3% year on year.

The company holds four segments—Automotive-Related Business, Gyomu Super Business, Meat Business, and Others—limiting dependence on any single business. In FY2026 (ending March 2026), all four segments achieved sales growth, with total sales reaching ¥232,199 million. Even in a phase where the Gyomu Super Business saw a profit decline year on year, the Automotive-Related Business (ordinary income +12.5%) and the Meat Business (+25.3%) demonstrated a complementary diversification effect.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥232,199 million (up 8.4% year on year), marking 5 consecutive periods of revenue growth, while the operating margin continued its downward trend, falling to 3.1% (from 3.3% in the prior period). New store opening costs, goodwill amortization, and impairment losses of ¥623 million (a sharp increase from ¥251 million in the prior period) are weighing on profits, and a structure in which revenue growth does not readily translate into profit growth appears to be taking hold. The forecast for FY2027 (ending March 2027) calls for a substantial improvement in operating profit to ¥8,900 million (up 22.4% year on year), but the feasibility of achieving this needs to be carefully assessed.

The annual dividend for FY2026 (ending March 2026) totaled ¥70 (ordinary dividend of ¥20 plus a commemorative dividend of ¥30), up from ¥40 in the prior period, and the dividend payout ratio rose to 64.2%. Under the medium-term management plan (running through the end of March 2031), the company's policy is to maintain a payout ratio of 50% or more with progressive dividends (¥70 or more), and it plans to pay ¥70 again in FY2027 (ending March 2027). Meanwhile, long-term borrowings doubled from ¥4,650 million to ¥10,290 million, and the interest coverage ratio fell sharply from 101.8x in the prior period to 45.8x, warranting close attention to the rise in financial leverage and exposure to interest rate risk.

Return on equity (ROE) declined to 14.0% (from 15.8% in the prior period). Total assets expanded by ¥10,867 million year on year to ¥81,560 million, while the equity ratio fell from 46.1% to 43.6%. A sharp increase in long-term borrowings (¥8,000 million in new borrowings) inflated interest-bearing debt, and the ratio of cash flow to interest-bearing debt worsened from 1.9 years to 2.9 years. The increasing financial burden associated with continued investment in new store openings and M&A represents a risk factor that could affect financial soundness depending on whether earnings forecasts are achieved, and this warrants continued monitoring.

Growth Strategy

Expanding group business scale through three pillars: store network expansion, M&A, and Southeast Asia expansion

In FY2026 (ending March 2026), 8 new stores were opened (2 in Hokkaido, 4 in the Chubu region, 1 in the Kinki region, and 1 in the Kyushu region), bringing the total to 223 stores at fiscal year-end. Although increased new store opening and renovation costs are pressuring profits, the revenue growth effect continues, and the company plans to continue expanding store openings in FY2027 (ending March 2026).

In October 2025, the company made Meat Planning Co., Ltd. (beef tongue processing and wholesale) a consolidated subsidiary, renaming it G-7 Meat Planning. The Meat Business achieved net sales of ¥24,091 million (up 14.6% year on year) and ordinary income of ¥267 million (up 25.3% year on year), realizing high growth. The company continues to pursue cost competitiveness through the integration of upstream functions and store network expansion (191 stores at fiscal year-end).

The company continued to open Bike World stores in Malaysia, opening 1 new store in FY2026 (ending March 2026). This is positioned as the first step in overseas expansion in response to the maturation of the domestic market, although the scale remains limited at present (1 of 20 stores). The company plans to consider the adoption of international accounting standards in line with progress in overseas expansion.

The company has set productivity improvement through business process innovation and DX promotion as a new management theme, promoting initiatives aimed at becoming a "company where people want to work and are chosen." This is positioned as building a foundation for achieving increased revenue and profit in FY2027 (ending March 2026) (operating income forecast up 22.4%), although specific quantitative targets have not been disclosed.

In the interim management plan ending at the end of March 2031, the company has clearly stated a dividend policy of a payout ratio of 50% or more and progressive dividends (¥70 or more per share). In FY2026 (ending March 2026), the company implemented an annual dividend of ¥70 (payout ratio of 64.2%), including a commemorative dividend of ¥30 for the 50th anniversary of its founding. An annual dividend of ¥70 (forecast payout ratio of 52.8%) is also planned for FY2027 (ending March 2026).

Last updated: July 19, 2026