Bicycle retailer Asahi kept its full-year non-consolidated outlook unchanged after a first quarter in which revenue kept climbing but profit went the other way. Sales rose 2.5% to ¥27.8bn, while operating profit fell 5.3% to ¥3.1bn, ordinary profit dropped 7.8% to ¥3.14bn and net profit slipped 8.4% to ¥2.14bn.
Where growth held up was not hard to spot. New-bike sales were nearly flat, up 0.7% to ¥20.1bn, but electric-assist bicycles rose 4.9% to ¥8.76bn, parts and services climbed 7.6% to ¥6.80bn, and peripheral businesses increased 8.2% to ¥905mn. Asahi said higher-priced electric-assist models sold well and repair and maintenance demand strengthened as consumers kept bicycles longer.
Profit told the less cheerful story. The company cited wage increases, upfront training investment and store-related operating costs, while the presentation said yen weakness worsened costs despite cost-reduction efforts. Higher sales added ¥309mn to operating profit, but that was more than offset by a ¥460mn rise in selling, general and administrative expenses and a ¥22mn drag from cost and product mix. SG&A rose 5.1% to ¥9.5bn, with personnel costs up 8.0% to ¥4.54bn, pulling the operating margin down to 11.1% from 12.1%.
Management nonetheless left both its first-half and full-year forecasts untouched, including full-year sales of ¥86.3bn and operating profit of ¥4.3bn. The filing is non-consolidated, so the figures describe the listed retailer on a standalone basis rather than a broader group.