Fiscal Year Ending May 2027 Q1 Financial Summary [Japanese GAAP] (Consolidated)

Performance Summary

Consolidated net sales for Q1 were 129,540 million yen, securing a 6.5% YoY increase. However, operating income was 5,404 million yen (−4.1%), ordinary income was 5,630 million yen (−4.7%), and net income attributable to owners of parent for the quarter was 3,788 million yen (−5.2%), falling below the prior year on the profit side. A factor in the decrease in quarterly net income was an increase in selling, general and administrative expenses (for example: higher salaries, allowances, increased provision for bonuses, and higher goodwill amortization). Full-year forecast remains unchanged from the initial outlook. The company continues to expand its store network centered on drugstores and to grow attached dispensing pharmacies.

Outlook and Capital Structure

For the fiscal year ending May 2027, the full-year forecasts are currently maintained at previously announced levels. Net sales are expected to be 541,000 million yen, operating income 25,300 million yen, ordinary income 26,500 million yen, and net income attributable to owners of parent 17,000 million yen. The dividend policy anticipates 48 yen at the end of Q2 and 48 yen at the end of Q3, totaling 96 yen for the year. Financial position: total assets 249,872 million yen, net assets 154,988 million yen, treasury stock at Q1 of fiscal 2027 is −2,705 million yen, and the equity ratio is 62.0%, indicating stability. The company will continue to strengthen store development and dispensing pharmacy cooperation while implementing measures to address intensifying competition.