Tsuruha Holdings (3391) Q1 2027 earnings summary

Executive summary

• Operating income grew approximately 40% year-over-year for both groups, with TSURUHA Group up ¥5.0 billion and WELCIA Group up ¥3.6 billion.

• Completed business integration with WELCIA HOLDINGS on December 1, 2025, and launched a new Medium-Term Management Plan (FY2/2027–FY2/2029) focused on value creation and integration synergies.

• Net sales increased 4.8% year-over-year for both groups, with consolidated net sales reaching ¥636.9 billion.

• Opened 36 new stores and closed 47, resulting in 5,665 directly managed stores as of May 31, 2026.

• Actively renovated stores and expanded the Drug & Food model to increase customer visits and trade area reach.

Financial highlights

• Net sales for the three months ended May 31, 2026, were ¥636,886 million, up 133.7% year-over-year.

• Operating income rose 94.3% year-over-year to ¥24,229 million; ordinary income increased 86.8% to ¥24,390 million.

• TSURUHA Group: Net sales ¥285.6 billion (+4.8% YoY), operating income ¥17.5 billion (+40.1% YoY), net income ¥11.6 billion (+4.1% YoY), EBITDA ¥22.1 billion (+29.5% YoY).

• WELCIA Group: Net sales ¥351.3 billion (+4.8% YoY), operating income ¥12.3 billion (+41.8% YoY), net income ¥7.4 billion (+22.0% YoY), EBITDA ¥17.4 billion (+14.5% YoY).

• Net income attributable to owners of the parent was ¥13,477 million, up 21.3% year-over-year.

Outlook and guidance

• Full-year forecast for FY ending February 28, 2027: net sales ¥2,555,000 million, operating income ¥99,400 million, net income attributable to owners of the parent ¥41,500 million, and basic EPS ¥91.62.

• Integration synergies are on track, with a first-year synergy target of ¥15.0 billion.

• No revisions to previously announced earnings forecasts.

• Continued focus on maximizing integration benefits through organizational and logistics initiatives.