Sugi Holdings (7649) Q4 2024 earnings summary

Executive summary

• Record profit achieved on strong existing-store growth; FY24 revenue rose 11.5% YoY to ¥744,477m and net income rose 15.6% to ¥21,979m.

• Merchandise demand and higher prescription volumes supported growth, while pharmacy gross margin faced pressure from drug-price and reimbursement revisions.

Financial highlights

• FY24 gross profit was ¥228,837m, up 13.0% YoY; SG&A rose 12.5% to ¥192,215m and operating income rose 15.7% to ¥36,622m.

• Ordinary income increased 17.4% to ¥38,039m; pretax income rose 13.9% to ¥32,102m; net income reached ¥21,979m, up 15.6%.

• EBITDA, defined as ordinary income plus depreciation, goodwill amortization and interest expense less interest income, rose 16.5% to ¥52,154m.

• FY24 results were slightly above budget for revenue (+¥1,977m), operating income (+¥122m) and net income (+¥479m).

Outlook and guidance

• FY25 guidance: revenue ¥810,000m (+8.8%), gross profit ¥250,000m (+9.2%), operating income ¥40,000m (+9.2%) and ordinary income ¥41,500m (+9.1%).

• FY25 net income is forecast at ¥25,000m (+13.7%) and EBITDA at ¥56,726m (+9.0%).

• FY25 existing-store sales are forecast to rise 3.7%; pharmacy sales +6.3% and merchandise sales +3.0%.