# H2O RETAILING CORPORATION: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第107期(2025/04/01－2026/03/31) (S100YDD0)
> Page: https://vizora.meequs.com/en/company/h2o-retailing
> Retrieved: 2026-09-30T18:33:08.031Z

## Company

H2O Retailing, founded in 1947, is a company in Real Estate Development & Leasing listed on TSE Prime. It has 7,775 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | H2O RETAILING CORPORATION |
| Ticker | 8242 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/8242.T) |
| Listing | TSE Prime |
| Head office | 大阪市北区角田町8番7号 |
| Representative (per filing) | 代表取締役社長 荒木直也 |
| Founded | Mar 1947 |
| Share capital | ¥17.8B |
| Employees (consolidated) | 7,775 |
| Average salary (parent only) | ¥10M |
| Fiscal year end | March |
| Website | www.h2o-retailing.co.jp (https://www.h2o-retailing.co.jp/) |
| Corporate number | 1120001059683 |
| EDINET | E03020 |
| Industries (Vizora) | Real Estate Development & Leasing, Supermarkets, Department Stores |

> Profile source: annual securities report (S100YDD0, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Supermarkets (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 12.2 | 45 |
| Profitability | 80.6 | 49 |
| Cash conversion | 56.4 | 47 |
| Efficiency | 9.2 | 49 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 66% of H2O Retailing's sales come from Supermarket business, with Department and Shopping center business making up much of the rest.
- Out of every ¥100 of sales, about ¥5 is left as operating profit.
- Revenue changed -0.2% from the prior year, operating profit -7.0%.

## Company structure

- Segment revenue mix: Supermarket business 66.0%、Department 29.4%、Shopping center business 4.5%
- Revenue → net income: ¥680215000000 → ¥30832000000
- Net income → operating cash flow: ¥30832000000 → ¥48333000000（difference ¥17501000000）
- Main uses of operating cash flow: CapEx ¥25638000000 / dividends ¥5269000000 / buybacks ¥15003000000
- Change in cash: ¥2871000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥680.2B |  |
| Operating income | ¥32.4B | Margin 4.8% |
| Net income | ¥29.9B | Margin 4.4% |
| Free cash flow | ¥22.7B |  |
| Largest business | Supermarket business | of segment revenue 66.0% |
| Employees (consolidated) | 7,775 |  |
| EPS | ¥198.72 |  |
| Diluted EPS | ¥196.93 |  |
| Book value per share | ¥1940.39 |  |
| Equity ratio | 43.4% |  |
| Shares outstanding | 125,201,000 |  |
| Treasury shares | 10,197,900 |  |
| Shareholders | 59,588 |  |
| Average salary (parent only) | ¥10M | Filing company only |
| Cash ratio | 8.1% | Cash ÷ revenue 8.5% |
| Vs. industry median margin | +1.9 pp | Supermarkets |
| ROE | 11.8% | Derived from disclosed figures |
| ROA | 4.1% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 2.8× dividends
- FY2026, one segment accounts for 63% of positive segment profit
- FY2026, segment profit share differs by -39 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥739198000000 | ¥680215000000 | -8.0% |
| Operating income | ¥-4438000000 | ¥32386000000 | — |
| Operating margin | -0.6% | 4.8% | +5.4 pp |
| Employees | 8,983 people | 7,775 people | -13.4% |
| Cash and equivalents | ¥49991000000 | ¥57812000000 | +15.6% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 百貨店事業 → 百貨店事業 | 29.4% |
| 百貨店事業 → 事業再編・廃止 | 19.9% |
| 食品事業 → 食品事業 | 41.5% |
| 商業施設事業 → 商業施設事業 | 4.5% |
| 商業施設事業 → 事業再編・廃止 | 4.7% |
| 新設・再編 → 食品事業 | 24.6% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Supermarket business | 5 years | +7.3% | ¥415883000000 | 2.4% | 2 |
| Department | 5 years | -11.8% | ¥185346000000 | 12.8% | 2 |
| Shopping center business | 5 years | -15.2% | ¥28458000000 | 13.5% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 680,215 | 100.0% | S100YDD0 |
| Cost of revenue | 372,042 | 54.7% | S100YDD0 |
| Gross profit | 308,172 | 45.3% | S100YDD0 |
| SG&A | 275,785 | 40.5% | S100YDD0 |
| Operating income | 32,386 | 4.8% | S100YDD0 |
| Ordinary income | 34,508 | 5.1% | S100YDD0 |
| Pretax income | 35,476 | 5.2% | S100YDD0 |
| Income tax | 4,644 | 0.7% | S100YDD0 |
| Net income | 30,832 | 4.5% | S100YDD0 |
| Net income attributable to owners | 29,950 | 4.4% | S100YDD0 |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 55 |
| SG&A | 40 |
| Operating income | 5 |
| (Ref.) Net income | 4 |

### Margin funnel

Gross margin 45.3% → Operating margin 4.8% → Net margin 4.4%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -0.2%; Core profit growth: -7.0%
Operating leverage (core profit growth ÷ revenue growth): 30.98×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 681,759 | 680,215 | -1,544 | -0.2% |
| Gross profit | 307,356 | 308,172 | 816 | +0.3% |
| Operating income | 34,830 | 32,386 | -2,444 | -7.0% |
| Net income attributable to owners | 34,842 | 29,950 | -4,892 | -14.0% |
| Operating cash flow | 46,268 | 48,333 | 2,065 | +4.5% |
| Free cash flow | 15,292 | 22,695 | 7,403 | +48.4% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 897,289 | 11,171 | 1.2% | -13,150 | 9,871 | -23,742 | S100LKVZ |
| FY ending Mar 2021 | 739,198 | -4,438 | -0.6% | -24,791 | 12,755 | -5,284 | S100O8HR |
| FY ending Mar 2022 | 518,447 | 740 | 0.1% | 9,872 | 6,465 | -23,713 | S100R4BV |
| FY ending Mar 2023 | 628,089 | 11,388 | 1.8% | 16,382 | 30,295 | -418 | S100TQI4 |
| FY ending Mar 2024 | 657,400 | 26,188 | 4.0% | 21,905 | 49,332 | 18,749 | S100W06B |
| FY ending Mar 2025 | 681,759 | 34,830 | 5.1% | 34,842 | 46,268 | 15,292 | S100YDD0 |
| FY ending Mar 2026 | 680,215 | 32,386 | 4.8% | 29,950 | 48,333 | 22,695 | S100YDD0 |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥87.5M |
| Operating income per employee (consolidated) | ¥4.2M |
| Net income per employee (consolidated) | ¥3.9M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 9,856 | 9,485 | 8,196 | 8,003 | 7,775 |
| Average salary (parent company) | ¥7.7M | ¥8.2M | ¥9M | ¥9.7M | ¥10M |
| Average age (parent company) | 45.5 years | 45.9 years | 46.4 years | 47.0 years | 46.2 years |
| Average tenure (parent company) | 19.5 years | 20.9 years | 20.6 years | 19.3 years | 18.5 years |

Year over year: Employees (consolidated) -2.8% · Revenue (consolidated) -0.2%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Department | 185,346 | 29.4% | 23,783 | 12.8% |
| Supermarket business | 415,883 | 66.0% | 10,021 | 2.4% |
| Shopping center business | 28,458 | 4.5% | 3,833 | 13.5% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Department | 29.4% | 63.2% | 33.8 | 12.8% |
| Supermarket business | 66.0% | 26.6% | -39.4 | 2.4% |
| Shopping center business | 4.5% | 10.2% | 5.7 | 13.5% |

Segment → industry: Shopping center business → Real Estate Development & Leasing / Supermarket business → Supermarkets / Department → Department Stores

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 48,333 | 7.1% | S100YDD0 |
| Capital expenditure | 25,638 | 3.8% | S100YDD0 |
| Free cash flow | 22,695 | 3.3% | 算出 |
| Investing cash flow | -4,724 | -0.7% | S100YDD0 |
| Financing cash flow | -41,444 | -6.1% | S100YDD0 |
| Dividends paid | 5,269 | 0.8% | S100YDD0 |
| Share buyback | 15,003 | 2.2% | S100YDD0 |
| Change in cash | 2,871 | 0.4% | S100YDD0 |
| Cash and equivalents | 57,812 | 8.5% | S100YDD0 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 33,174 | 57,020 | 66,373 | 54,940 | 57,812 | S100TQI4, S100W06B, S100YDD0 |
| Total assets | 654,558 | 686,423 | 710,089 | 730,499 | 714,709 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Net assets | 260,938 | 272,814 | 294,026 | 313,420 | 325,440 | S100TQI4, S100W06B, S100YDD0 |
| Share capital | 17,796 | 17,796 | 17,796 | 17,796 | 17,796 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Trade receivables | 59,906 | 68,572 | 74,653 | 74,782 | — | S100R4BV, S100TQI4, S100W06B |
| Property, plant and equipment | 301,245 | 303,253 | 292,828 | 318,847 | 306,159 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Intangible assets excluding goodwill | 16,443 | 19,764 | 25,951 | 48,379 | 47,263 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Goodwill | 2,197 | 1,690 | 1,183 | 7,234 | 6,205 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Investment securities | 104,231 | 101,249 | 103,951 | 97,048 | 94,786 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Current assets | 129,725 | 161,408 | 180,095 | 169,516 | 169,163 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Current liabilities | 147,663 | 176,055 | 190,648 | 233,775 | 201,563 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Trade payables | 56,839 | 63,674 | 78,875 | — | — | S100R4BV, S100TQI4 |
| Long-term borrowings | 154,282 | 143,917 | 143,494 | 98,242 | 106,845 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Bonds | 20,000 | 20,000 | 10,000 | 10,000 | 10,000 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Total liabilities | 393,620 | 413,608 | 416,062 | 417,079 | 389,268 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Non-controlling interests | 22,924 | 22,792 | 24,006 | 12,700 | 14,049 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Equity attributable to owners of parent | 202,030 | 206,213 | 223,672 | 248,449 | 258,380 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Retained earnings | 92,299 | 105,473 | 124,954 | 155,564 | 180,245 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |
| Treasury stock | -3,151 | -11,938 | -13,768 | -5,546 | -20,269 | S100R4BV, S100TQI4, S100W06B, S100YDD0 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 8% | S100YDD0 |
| Property, plant and equipment | 43% | S100YDD0 |
| Intangibles and goodwill | 8% | S100YDD0 |
| Investment securities | 13% | S100YDD0 |
| Other assets | 28% | S100YDD0 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 54% | S100YDD0 |
| Equity | 46% | S100YDD0 |
| Other liabilities | 0% | S100YDD0 |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 654,558 | 686,423 | 710,089 | 730,499 | 714,709 |
| Equity | 260,938 | 272,814 | 294,026 | 313,420 | 325,440 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 33,174 | 57,020 | 66,373 | 54,940 | 57,812 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 45.0% | S100YDD0 |
| Fixed assets ÷ total assets | 42.8% | S100YDD0 |
| Goodwill ÷ parent equity | 2.4% | S100YDD0 |

Goodwill over 4 years: 2,197 → 6,205 JPY; total investing cash flow: -35,201 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 8.1% |
| Cash ÷ revenue | 8.5% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 149.2% |
| Cash vs. profit gap | 18,383 JPY mn (of net income 61.4%) |
| Shareholder returns / net income | 67.7% |
| Shareholder returns / FCF | 89.3% |
| Shareholder payments — dividends / net income | 17.6% |
| Shareholder payments — dividends / FCF | 23.2% |
| CapEx intensity (capex ÷ revenue) | 3.8% |
| Investing CF relative to operating CF | 9.8% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 1.9% | 0.79× | 1.5% | 3.24× | 4.9% | S100R4BV |
| 2023 | 2.6% | 0.94× | 2.4% | 3.28× | 8.0% | S100TQI4 |
| 2024 | 3.3% | 0.94× | 3.1% | 3.25× | 10.2% | S100W06B |
| 2025 | 5.1% | 0.95× | 4.8% | 3.05× | 14.8% | S100YDD0 |
| 2026 | 4.4% | 0.94× | 4.1% | 2.85× | 11.8% | S100YDD0 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 阪神電気鉄道㈱ | Major shareholder | 12.8% | 2026-03-31 |
| 日本マスタートラスト信託銀行㈱ （信託口） | Major shareholder | 11.3% | 2026-03-31 |
| 阪急阪神ホールディングス㈱ | Major shareholder | 7.2% | 2026-03-31 |
| 関西フードマーケット取引先持株会 | Major shareholder | 4.5% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 2.9% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505223 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.4% | 2026-03-31 |
| H2Oリテイリンググループ従業員持株会 | Major shareholder | 1.7% | 2026-03-31 |
| 伊藤忠食品㈱ | Major shareholder | 1.2% | 2026-03-31 |
| 国分グループ本社㈱ | Major shareholder | 1.2% | 2026-03-31 |
| モルガン・スタンレーＭＵＦＧ証券㈱ | Major shareholder | 1.1% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥680.2B, nearly unchanged from ¥681.8B (-0.2%).
- Operating income slipped from ¥34.8B to ¥32.4B (-7.0%), and net income dropped from ¥34.8B to ¥29.9B (-14.0%).
- Cash generation improved: operating cash flow rose to ¥48.3B (+4.5%) and free cash flow to ¥22.7B (+48.4%).

### Drivers

- Department store profit fell: inbound sales dropped as fewer Chinese tourists visited, floor space at the Hankyu main store was closed for the remodel, and a POS system replacement added one-off costs
- The supermarket business grew sales and profit, helped by higher spending per customer amid rising prices and by new value-focused and low-price store formats
- Net income fell because large special losses, such as impairments, offset special gains that included selling shares in Toho

### Risks

- A shrinking and aging population, polarized consumer spending, and tougher competition across retail formats
- Its stores are concentrated in Kansai, so a major disaster such as a Nankai Trough earthquake could hit many locations at once
- Cyberattacks that disrupt systems or leak customer data

Cited: Annual securities report, 107th term (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report, 107th term (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第107期(2025/04/01－2026/03/31) | S100YDD0 | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YDD0,, |
| 有価証券報告書－第106期(2024/04/01－2025/03/31) | S100W06B | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W06B,, |
| 有価証券報告書－第105期(2023/04/01－2024/03/31) | S100TQI4 | 2024-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TQI4,, |
| 有価証券報告書－第104期(2022/04/01－2023/03/31) | S100R4BV | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R4BV,, |
| 有価証券報告書－第103期(令和3年4月1日－令和4年3月31日) | S100O8HR | 2022-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O8HR,, |
| 有価証券報告書－第102期(令和2年4月1日－令和3年3月31日) | S100LKVZ | 2021-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LKVZ,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).