Sugi Holdings (7649) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2026 rose 10.1% year-over-year to ¥270,175 million, with operating profit up 10.9% to ¥12,209 million and EBITDA up 7.9% to ¥17,069 million.

• Net income declined 67.5% year-over-year due to a high base in the previous year, with Q1 FY2026 net income at ¥6,901 million, down from ¥21,224 million in Q1 FY2025.

• Q1 profit was below forecast, with operating profit and net income falling short by ¥291 million and ¥879 million, respectively.

• Profit attributable to owners of parent was ¥11,588 million, up 1.9% year-over-year.

Financial highlights

• Gross profit for Q1 FY2026 was ¥83,331 million (+10.2% YoY); SG&A expenses increased 10.1% YoY to ¥71,121 million.

• Ordinary profit for the quarter was ¥12,209 million, up 10.9% year-over-year.

• Basic earnings per share for the quarter was ¥38.14, compared to ¥117.28 in the prior year period.

• Comprehensive income for the quarter was ¥7,063 million, a 67.1% decrease year-over-year.

• Total assets as of May 31, 2026, were ¥638,463 million, with net assets of ¥293,932 million and an equity-to-asset ratio of 46.0%.

Outlook and guidance

• Full-year FY2026 net sales forecast revised to ¥1,092,000 million (+8.1% YoY); operating profit forecast at ¥54,000 million (+11.2% YoY).

• Profit attributable to owners of parent is forecast at ¥32,800 million, down 27.1% year-over-year; basic EPS expected to be ¥181.24.

• Gross profit and SG&A forecasts for both 1H and 2H were revised downward.

• Net increase of 100 stores planned for FY2026, with 112 drugstore openings and 30 closures.

• No revisions to previously announced earnings or dividend forecasts.