Lawson, the Japanese convenience-store operator, has announced a remarkable 92% increase in its net profit for the first quarter. The company’s robust sales growth in the foods and cosmetics sectors has been the driving force behind this impressive financial achievement.
At the start of Wednesday morning’s trading, Lawson’s shares were indicated to be 16% higher within a trading range of 7,261 yen. This surge in share value can be attributed to overwhelming buy orders outweighing sell orders.
In a statement released on Tuesday after the market closed, Lawson disclosed that its net profit for the quarter ended May soared to Y16.095 billion ($114.6 million), significantly surpassing the Y8.38 billion recorded in the same period last year.
The company reported a 53% increase in profit from its domestic convenience-store business, amounting to Y19.97 billion. This surge was primarily driven by the rise in sales of foods, drinks, and cosmetics. Furthermore, Lawson’s entertainment business experienced a notable 47% gain in profit due to increased ticket sales for concerts and sports events. Additionally, their movie theaters attracted a larger number of visitors during this period.
Lawson’s overseas convenience-store business recovered from its previous loss as pandemic-related restrictions eased, resulting in consumers returning to the streets in China as well as other countries.
During the first quarter, Lawson’s revenue witnessed a growth of 12%, reaching Y264.10 billion. Their cost of sales rose by 11%, while selling, general, and administrative expenses increased by 5.5%.
Despite this exceptional performance, Lawson has decided to maintain its earnings projections for the fiscal year ending in February 2024. The company foresees a 6.0% increase in revenue to reach Y1.060 trillion, while net profit is expected to decline slightly by 2.4% to Y29.00 billion.
