Kusuri No Aoki Holdings (3549) Q2 2025 earnings summary

Executive summary

• H1 FY2025 sales rose 12.6% YoY to ¥242,826m; operating profit increased 85.5% to ¥12,651m and profit attributable to owners of parent rose 151.9% to ¥8,622m.

• Excluding share-based payment expenses, H1 operating profit was ¥13,044m, up 1.6% YoY; parent profit was ¥9,015m, down 4.5%.

Financial highlights

• H1 gross profit was ¥64,356m, ordinary profit ¥12,911m and comprehensive income ¥8,304m; SG&A was ¥51,704m versus ¥52,016m a year earlier.

• Sales reached 101.2% of plan, operating profit 104.5% and ordinary profit 104.9%; parent profit was 95.4% of plan.

• Reported H1 gross margin was 26.5%, down 0.8 percentage points YoY; operating margin was 5.2%, up 2.0 points.

• Reported SG&A ratio fell 2.8 points to 21.3%; excluding share-based payment expenses, it was 21.1%, down 0.2 points, and operating margin was 5.4%, up 0.6 points.

• H1 basic EPS was ¥86.39 versus ¥36.18; diluted EPS was ¥85.25.

Outlook and guidance

• FY2025 forecast: sales ¥485,000m (+11.0%), operating profit ¥25,107m (+35.2%), ordinary profit ¥25,607m (+27.4%) and parent profit ¥18,107m (+47.1%).

• Excluding share-based payment expenses, FY2025 forecast is operating profit ¥25,500m (+0.5%), ordinary profit ¥26,000m (-3.4%) and parent profit ¥18,500m (-3.2%).

• Plans call for 70 new drugstores and 70 dispensing pharmacies, reaching 1,018 stores and a 66.0% dispensing-store ratio at year-end.

• Food is forecast at 50.1% of sales, up 1.8 percentage points, with food sales growth of 15.0% YoY.

• Forecast EPS is ¥191.41, or ¥195.57 excluding share-based payment expenses; dividends are forecast at ¥7 per share at Q2-end and ¥7 at year-end.