Kusuri No Aoki Holdings (3549) Q4 2025 earnings summary

Executive summary

• FY May 2025 sales were ¥501,470 million, up 14.8% YoY; operating income was ¥26,601 million, up 43.3%, and net income was ¥17,786 million, up 44.5%.

• Sales exceeded plan by 3.4% and operating income by 6.0%; net income was 1.8% below plan.

• Annual sales reached ¥500 billion and the network passed 1,000 locations, one year ahead of the medium-term sales milestone; year-end total was 1,036 stores.

Financial highlights

• Gross profit was ¥132,956 million, up 12.6% YoY; gross margin was 26.5%, down 0.5 points.

• SG&A rose 6.9% to ¥106,354 million, while its sales ratio fell 1.6 points to 21.2%.

• Excluding share-based compensation, operating income was ¥26,994 million, up 6.4%; ordinary income was ¥27,906 million, up 3.7%; net income was ¥18,179 million, down 4.9%.

• Basic EPS was ¥175.42 versus ¥130.11; diluted EPS was ¥174.27 versus ¥126.86.

• Operating cash flow was ¥22,167 million, investing cash flow -¥31,079 million and financing cash flow ¥7,668 million; year-end cash was ¥47,731 million and free cash flow -¥8,912 million.

Outlook and guidance

• FY May 2026 forecast: sales ¥560,000 million (+11.7%), operating income ¥23,000 million (-13.5%), ordinary income ¥22,700 million (-17.5%) and net income ¥15,500 million (-12.9%).

• Planned gross margin is 25.8%, down 0.7 points; SG&A ratio is 21.7%, up 0.5 points; operating margin is 4.1%, down 1.2 points.

• No share-based compensation expense is expected in FY May 2026; against FY May 2025 adjusted for that expense, planned operating income is down 14.8% and net income down 14.7%.

• H1 FY May 2026 forecast: sales ¥272,000 million, operating income ¥11,300 million, ordinary income ¥11,170 million and net income ¥8,000 million.

• Plan calls for 110 drugstore openings, 30 pharmacy openings and 8 closures; another forecast specifies 37 stores with attached dispensing pharmacies. Annual dividend forecast is ¥16 per share.