Japan’s Seven & i Holdings (JP:3382) maintained its annual guidance despite a slump in profits for the nine months of FY25. The owner of 7-Eleven convenience stores announced that its net profit dropped by 65% year-on-year to ¥63.63 billion for the nine months ending November 30. The profit decline was primarily driven by reduced consumer spending in Japan and North America, which affected store operations.
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Meanwhile, the company maintained its revenue and net profit projections for the fiscal year ending in February. The company expects a 3.5% increase in revenue, reaching ¥11.879 trillion, but projects a 27% decline in net profit to ¥163 billion. Seven & i shares fell by 0.92% in today’s session.
Seven & i Holdings is a holding company, managing various businesses through its subsidiaries.
Seven & i’s Profit Drop Fuels Takeover Concerns
The company’s operating profit for the third quarter fell by 24% year-over-year to ¥128.4 billion. The result also fell short of analyst expectations, which were set at ¥138 billion, according to the LSEG (London Stock Exchange Group) data.
The company’s drop in profit comes at a time when it is trying to establish its value as an independent company. This has further sparked concerns about its takeover.
In August 2024, the company gained attention after receiving a landmark takeover proposal from its Canadian rival, Alimentation Couche-Tard (TSE:ATD). Later, in September, the company rejected a $39 billion buyout offer, citing it undervalued the business. Couche-Tard later increased its offer to around $47 billion.
In November, Bloomberg reported that the company also received a non-binding acquisition proposal from its Vice President, Junro Ito, along with his affiliated company, Ito-Kogyo Co.
Seven & i Stock Price Forecast
According to the consensus among analysts on TipRanks, 3382 stock has been assigned a Moderate Buy rating based on two Buy and three Hold recommendations from analysts. Overall, the Seven & i Holdings share price target of ¥2,581.35 implies an upside of 9% from the current share price level.
