Financial Summary for the Second Quarter (Interim) of Fiscal Year Ending May 2026 [Japanese GAAP] (Consolidated)

Summary of Performance

For the second quarter of the fiscal year ending May 2026 (June 1, 2025 to November 30, 2025), consolidated net sales were 241,926 million yen (up 7.6% YoY), operating income was 11,106 million yen (up 6.2% YoY), ordinary income was 11,691 million yen (up 8.2% YoY), and net income attributable to owners of the parent was 7,885 million yen (up 12.3% YoY). In the drugstore business, ongoing EDLP (Every Day Low Pricing) initiatives, an increase in the number of dispensing pharmacy stores, and new market entry into Tochigi Prefecture contributed positively. The nursing care business focused on facility expansion and remodeling as well as enhancement of new services. Store counts were 799 drugstores, 9 food supermarkets, 430 dispensing pharmacies, and 39 nursing care facilities.

Financial Position and Dividend Status

At the end of the interim period for the fiscal year ending May 2026, total assets stood at 245,101 million yen, net assets at 147,705 million yen, and the equity ratio was 60.3%, approximately the same level as the previous interim period. Cash and cash equivalents were 35,902 million yen, decreasing from the prior interim period but maintaining a stable financial base. Dividends are planned at 45 yen at the end of the second quarter and 90 yen for the full year, representing an increase from 78 yen in the prior year quarter.

Full-Year Earnings Forecast

The consolidated earnings forecast for the fiscal year ending May 2026 projects net sales of 491,500 million yen (up 7.5% YoY), operating income of 24,100 million yen (up 6.5% YoY), ordinary income of 24,900 million yen (up 6.3% YoY), and net income attributable to owners of the parent of 16,300 million yen (up 3.9% YoY). Earnings per share are forecasted at 252.31 yen with no revisions from the most recent forecast.