Welcia (3141) Q1 2026 earnings summary

Executive summary

• Revenue and profit rose significantly year-over-year, driven by M&A, dispensing sales growth, private brand expansion, and increased consumer spending, despite higher SG&A and a challenging economic environment.

• Private brand sales grew 21% YoY, with the sales ratio reaching 9.9%, reflecting successful assortment expansion and product quality recognition.

• Strategic initiatives included digital transformation, operational efficiency improvements, app updates, personalized promotions, and expansion of WAON POINT and Care Capsule healthcare facilities.

• Expansion in long-term care services and collaboration with specialized medical institutions strengthened the community health station vision.

• Number of stores reached 3,005, with 19 openings and 27 closures; dispensing pharmacies increased to 2,272 locations.

Financial highlights

• Net sales: ¥334,428M (+9.7% YoY); operating income: ¥7,813M (+42.1% YoY); net income: ¥6,101M (+116.0% YoY).

• Gross profit margin improved to 29.8% (+0.6pt YoY); EBITDA rose 26.7% YoY to ¥14,382M.

• Dispensing pharmacy sales: ¥76,520M (+13.2% YoY); number of prescriptions up 11.2% YoY.

• Net income per share was ¥29.38, up from ¥13.67 in the prior year period.

• Comprehensive income rose to ¥6,143M, up 129.5% YoY.

Outlook and guidance

• H1 FY2026 forecasts: net sales ¥685.1B (+8.6% YoY), operating income ¥20.5B (+8.6% YoY), net income ¥12.5B (+6.7% YoY).

• Existing store sales expected to grow 3.0% (products) and 1.9% (dispensing); 29 new store openings and 26 closures planned.

• Planned merger with TSURUHA HOLDINGS INC. and scheduled delisting in November 2025; full-year forecast not provided due to integration.