Consolidated Financial Summary for the Fiscal Year Ending February 2026 (Japanese GAAP)

Overview of Results

For the fiscal year ending February 2026, consolidated results were net sales of JPY 1,450,585 million, operating income of JPY 63,037 million, ordinary income of JPY 63,086 million, and net income attributable to owners of the parent of JPY 42,670 million. Due to the change in fiscal year, comparison with the previous period is not conducted. However, the number of stores significantly increased following the business integration with Welcia Holdings Inc., with the group totaling 5,676 stores. Profitability was enhanced through promotion of pharmacy-adjacent services, expansion of private brand products, and optimal management of selling, general and administrative expenses.

Financial Position and Cash Flow Status

Total assets amounted to JPY 1,647,981 million, total liabilities were JPY 752,275 million, and total net assets were JPY 895,706 million, with the equity ratio rising to 53.1%. Cash flow from operating activities generated JPY 84,582 million, investing activities used JPY 19,787 million, and financing activities used JPY 39,047 million. Cash and cash equivalents increased to JPY 201,309 million.

Outlook and Dividend Policy

For the fiscal year ending February 2027, consolidated earnings forecast includes net sales of JPY 2,555,000 million, operating income of JPY 99,400 million, and net income attributable to owners of the parent of JPY 41,500 million. Based on the group strategy founded on the business integration, efforts will be made to strengthen profitability through revitalization of existing stores, promotion of pharmacy-adjacent services, enhancement of private brands, and advancement of digital transformation (DX). Dividend policy aims for stable and progressive dividends, with shareholder returns targeted at a payout ratio of 35% or higher.