Kusuri No Aoki Holdings (3549) Q2 2026 earnings summary

Executive summary

• 1H FY May 2026 sales rose 15.2% YoY to ¥279.8bn; operating income increased 6.7% to ¥13.5bn and net income rose 11.8% to ¥9.6bn, exceeding the half-year plan.

• Growth reflected store expansion, stronger food sales, attached dispensing pharmacies and consolidation of Miwa Store, acquired June 2, 2025.

Financial highlights

• 1H gross profit rose to ¥73.7bn from ¥64.4bn; gross margin was 26.3%, down 0.2 percentage points YoY.

• SG&A increased to ¥60.2bn from ¥51.7bn; operating margin was 4.8%, down 0.4 percentage points YoY.

• Ordinary income rose 5.4% to ¥13.6bn; comprehensive income was ¥10.9bn versus ¥8.3bn.

• Basic EPS was ¥97.71 versus ¥86.39; prior-year comparison includes ¥392m of stock compensation expense in Q2 FY2025, with none in Q2 FY2026.

Outlook and guidance

• FY May 2026 guidance unchanged: sales ¥560bn (+11.7%), operating income ¥23bn (-13.5%), ordinary income ¥22.7bn (-17.5%) and net income ¥15.5bn (-12.9%).

• Excluding stock compensation expense, FY forecast declines are 14.8% for operating income, 18.7% for ordinary income and 14.7% for net income.

• FY guidance implies gross margin of 25.8% (-0.7 points YoY), SG&A ratio of 21.7% (+0.5 points) and operating margin of 4.1% (-1.2 points).

• Annual dividend forecast is ¥56 per share, including an ordinary year-end dividend of ¥8 and a ¥40 40th-anniversary commemorative dividend.

• The Fourth Medium-term Management Plan (FY May 2026–2030) targets 10% CAGR in sales and operating income, ¥800bn sales and ¥44bn operating income by FY May 2030; the longer-term FY May 2035 sales vision is ¥1tn.