Welcia (3141) Q2 2026 earnings summary

Executive summary

• Revenue and profit rose year-over-year, driven by M&A, existing store growth, improved gross margin, and effective SG&A control despite higher system investments and labor costs.

• Private brand sales grew 18.4% YoY, now comprising 10.1% of total sales, with notable gains in food and health categories; private brand lineup expanded to 451 items.

• Dispensing business expanded, supported by digital initiatives and increased number of prescriptions, with gross margin improvement despite NHI drug price revisions; dispensing pharmacies increased to 2,287 stores.

• Store operations were streamlined through digital tools, new POS systems, and labor hour management, reducing personnel cost ratio by 0.3 pts YoY.

• Integration with TSURUHA Holdings Inc. is planned, with delisting scheduled for November 27, 2025.

Financial highlights

• Net sales: ¥678,793 million (+7.6% YoY), operating income: ¥22,809 million (+20.8% YoY), net income: ¥15,923 million (+35.9% YoY), ordinary income: ¥25,418 million (+21.6% YoY), net income per share: ¥76.62.

• Gross profit margin improved to 30.5% (+0.4 pts YoY); EBITDA reached ¥35,898 million (+16.4% YoY).

• Dispensing pharmacy sales: ¥152,104 million (+11.2% YoY); number of prescriptions: 14,324 thousand (+8.4% YoY).

• Category sales (YoY): OTC ¥119,604m (+3.5%), cosmetics ¥109,371m (+7.9%), household goods ¥91,314m (+6.3%), food ¥160,553m (+9.6%), dispensing ¥152,104m (+11.2%).

• SG&A expenses rose 7.7% YoY, but the ratio to sales remained flat at 27.1%.

Outlook and guidance

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

• Focus on opening new pharmacies, renovations, and expanding private brand product ratio to 11.0%.

• No full-year forecast due to planned integration with TSURUHA Holdings Inc. and upcoming delisting.