Qol Holdings (3034) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 2.5% YoY to ¥145,808m; operating profit increased 44.4% to ¥10,369m and net income attributable to owners rose 31.8% to ¥4,675m.

• Pharmaceutical Manufacturing and BPO drove profit growth, while Pharmacy profit declined on fewer prescriptions and higher labor costs.

Financial highlights

• Gross profit increased 17.5% to ¥23,635m; SG&A rose 2.5% to ¥13,265m.

• Ordinary profit rose 42.7% to ¥10,353m; EBITDA increased 30.4% to ¥15,544m.

• Basic EPS was ¥125.54, up 32.8%; EPS before goodwill amortization was ¥182.19.

• Extraordinary losses totaled ¥306m, including ¥279m from contract cancellations.

Outlook and guidance

• FY3/2027 forecasts: net sales ¥315,000m, EBITDA ¥28,700m, operating and ordinary profit ¥16,500m each, net income attributable to owners ¥7,800m and EPS ¥209.45; forecast unchanged.

• H1 progress against full-year forecasts: sales 46.3%, EBITDA 54.2%, operating profit 62.8%, ordinary profit 62.7% and attributable profit 59.9%.

• H2 Pharmacy priorities include store openings, M&A, prescription growth, homecare expansion and higher average prescription prices; receipts typically rise in H2 with seasonal illness and colder weather.

• Medium-term plan targets the 2030 vision, “Deliver Peace of Mind in Healthcare to Everyone,” through Pharmacy, BPO Contracting and Pharmaceutical Manufacturing.