Robinhood reports August 2025 customer and trading metrics
Introduction & Market Context
GALILEI CO. LTD. (TSE:6420), a leading Japanese manufacturer of commercial refrigeration and food service equipment, reported record sales for the fiscal year ended March 31, 2025, according to its financial results presentation released on August 7, 2025. The company achieved strong growth across most business segments while continuing to invest in production capacity and international expansion.
GALILEI operates with 76 offices across Japan and 14 offices in 11 countries, positioning itself as a significant player in the commercial refrigeration market. The company’s stock closed at ¥3,650 on September 9, 2025, down 0.68% for the day, but remains well above its 52-week low of ¥2,313.
Financial Performance Highlights
The company reported consolidated net sales of ¥130.639 billion, representing a 12.8% increase from the previous fiscal year. Operating profit rose 8.3% to ¥16.572 billion, while ordinary profit increased 6.3% to ¥17.175 billion. However, net profit attributable to owners of the parent declined slightly by 2.4% to ¥12.008 billion, primarily due to an increase of approximately ¥1.2 billion in corporate taxes.
As shown in the following consolidated statement of income:
The company’s gross profit margin slightly decreased to 27.6% from 28.0% in the previous year, reflecting increased material and labor costs. Selling, general and administrative expenses rose 14.2% to ¥19.526 billion, growing at a faster rate than sales.
GALILEI’s balance sheet remains strong with total assets of ¥141.562 billion, up ¥11.030 billion from the previous year. The equity ratio improved to 72.4%, up 1.4 percentage points, though ROE declined to 12.3% from 14.3% in the previous year.
Segment Performance Analysis
The company’s sales composition shows refrigerated and freezer showcases remain its largest segment at 40.5% of total sales, followed by food services at 23.4%. Most business segments showed growth compared to the previous fiscal year:
The refrigerated and freezer showcases segment achieved record sales of ¥52.915 billion, up 13.3% year-over-year. This growth was driven by strong demand from supermarkets and drug stores pursuing energy-efficient store renovations, as well as convenience stores replacing showcases with natural refrigerant models.
The food services segment saw the strongest growth rate, with sales increasing 20.3% to ¥30.592 billion. This significant growth was largely attributed to Nippon Senjoki K.K. joining the GALILEI Group, which boosted overseas sales particularly in Vietnam, Indonesia, and Hong Kong.
Overseas operations showed impressive growth, with sales rising to ¥7.239 billion, a significant increase from ¥5.307 billion in the previous year. The company reported particularly strong performance in Vietnam (up 119%), Indonesia (up 150%), Thailand (up 59%), and Taiwan (up 49%).
The only segments that did not show growth were medical science products, which declined slightly to ¥1.293 billion, and large panel refrigerators, which remained relatively flat at ¥15.813 billion.
Strategic Initiatives & Capital Investments
GALILEI is making substantial investments to support future growth. The company is constructing a new Shiga Factory 2 for refrigerated and freezer showcases, expected to be operational by December 2026. This facility will increase production capacity by 30% to 60,000 units per year, with an estimated investment of ¥8.6 billion (excluding land acquisition costs). The company expects to receive a ¥2.8 billion subsidy for this project.
The new factory is designed as a "mother factory" for showcase operations and will serve as an R&D hub. It will feature environmentally friendly design with CO2-free and ZEB energy efficiency certification.
Additionally, GALILEI is building a new distribution center at its Okayama Factory, projected to be operational in June 2025. With an estimated investment of ¥2.9 billion, this facility will increase product storage capacity to more than 6,000 units and double warehouse storage capacity. The company aims to ship 500 units per day from this center, addressing challenges related to the "2024 logistics problem."
As part of its GALILEI Global Vision 2030, the company launched its first overseas showrooms under the name F’S DESIGN COURT in Bangkok, Thailand (April 2025) and Ho Chi Minh City, Vietnam (May 2025). The company plans to open additional showrooms in Indonesia and strengthen its food services business throughout Southeast Asia.
Shareholder Returns & Future Outlook
GALILEI has established a shareholder return policy with a DOE (dividend on equity) target of 3% for the three-year period from FY ended March 31, 2025 to FY ending March 31, 2027. The company has steadily increased its DOE from 1.7% in FY 2021 to the current 3.0%.
For the fiscal year ending March 31, 2026, the company forecasts a dividend of ¥81 per share, an increase of ¥7 from the previous year. This represents a dividend payout ratio of 27.1%, up from 24.7% in FY 2025.
Looking ahead, GALILEI’s financial forecast for the fiscal year ending March 31, 2026 projects a slight decline in performance, with net sales expected to decrease by 1.0% to ¥129.353 billion and operating profit to decline by 8.7% to ¥15.136 billion. Net profit attributable to owners of the parent is forecast to decrease by 10.0% to ¥10.809 billion.
The conservative outlook may reflect ongoing concerns about material and labor costs, as well as potential economic headwinds. However, the company’s substantial investments in production capacity and distribution infrastructure, along with its expanding international presence, position GALILEI for potential long-term growth beyond the next fiscal year.
Full presentation:
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