Suzuken (9987) Q2 2027 earnings summary

Executive summary

• 1H FY2026 net sales rose 5.1% YoY to ¥1,281,025m, while operating profit fell 20.0% to ¥13,561m and parent-attributable profit fell 20.1% to ¥12,974m.

• Prescription-market growth, new drugs and specialty-drug sales supported revenue; higher procurement, logistics and inflation-driven costs weighed on earnings.

• Strategic focus is shifting toward next-generation wholesale capabilities integrating distribution, digital and logistics services.

Financial highlights

• 1H net sales were ¥1,281,025m, up ¥61,584m YoY; gross profit was ¥92,656m, down ¥949m, and SG&A rose ¥2,448m to ¥79,095m.

• Ordinary profit declined 14.9% to ¥15,343m; basic EPS was ¥96.07, adjusted for the October 1, 2026 two-for-one stock split.

• Versus forecast, net sales exceeded plan by ¥36,025m and operating profit by ¥1,661m; specialty-drug growth offset COVID-19-related product contraction.

• Comprehensive income was ¥11,285m versus ¥13,846m YoY; extraordinary items included a ¥354m disaster loss and ¥4,378m gain on investment securities.

Outlook and guidance

• FY2026 full-year forecast remained unchanged: net sales ¥2,563.0bn, operating profit ¥31.2bn, ordinary profit ¥34.3bn and parent-attributable profit ¥25.0bn.

• FY2026 forecast ROE is 6%; management cited wage increases, inflation and other cost pressures.

• FY2028 targets include consolidated ordinary profit of at least ¥40.0bn, Digital ordinary profit of at least ¥3.0bn and Logistics ordinary profit of at least ¥2.0bn.

• Digital plans foundation-building in FY2026, followed by usage and contract-service expansion in FY2027, toward ordinary profit of at least ¥3.0bn in FY2028.