CAWACHI LIMITED (2664): FY2025 Results Summary — Lower Sales and Profit, Net Income Down 34.5% on Impairment Losses

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: CAWACHI LIMITED does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. The underlying material is the company’s financial results summary (tanshin) for the fiscal year ended March 2026, which is not subject to audit by an audit firm. The company labels the period covered here the fiscal year ended March 2026 (March 16, 2025 to March 15, 2026); on this site it is classified as FY2025 because it is the company’s most recently completed fiscal year, and the labels used in the text and tables below follow the source material.

CAWACHI LIMITED announced its results for the fiscal year ended March 2026 (March 16, 2025 to March 15, 2026). Consolidated net sales were 284,492 million yen (-1.2% year on year), operating profit was 6,779 million yen (-9.1%), and ordinary profit was 7,897 million yen (-5.3%), so both sales and profit declined. Profit attributable to owners of parent was 3,200 million yen (-34.5%), reflecting the recording of impairment losses and other factors.

Consolidated Results (FY Ended March 2026, Actual)

Against an environment of more store openings by competing chains and consumers holding back on purchases in response to price increases on merchandise, the company focused on expanding its product lineup in areas such as health foods, reviewing selling prices, and promoting sales through various campaigns. By product category, cosmetics came in above the previous fiscal year, while pharmaceuticals, household sundries and general foods came in below the previous fiscal year. The company proceeded with new store openings and also added dispensing pharmacies at stores.

Item	FY ended March 2026	FY ended March 2025	Change
Net sales	284,492 million yen	287,816 million yen	-1.2%
Operating profit	6,779 million yen	7,461 million yen	-9.1%
Ordinary profit	7,897 million yen	8,340 million yen	-5.3%
Profit attributable to owners of parent	3,200 million yen	4,884 million yen	-34.5%

On the financial position, total assets were 199,614 million yen (199,601 million yen at the end of the previous fiscal year), essentially unchanged. Net assets increased to 115,928 million yen (114,410 million yen at the end of the previous fiscal year) on higher retained earnings and other factors, and the equity-to-asset ratio was 58.0% (57.3% at the end of the previous fiscal year). Net assets per share were 5,188.27 yen (5,120.32 yen at the end of the previous fiscal year).

Item	FY ended March 2026	FY ended March 2025
Total assets	199,614 million yen	199,601 million yen
Net assets	115,928 million yen	114,410 million yen
Equity-to-asset ratio	58.0%	57.3%
Net assets per share	5,188.27 yen	5,120.32 yen

Full-Year Forecast (FY Ending March 2027)

For the coming fiscal year, the company says it will work on promoting systemization and mechanization aimed at improving overall efficiency, as well as on store remodeling and measures to stimulate demand. As a measure to strengthen its specialist offering, it will focus on the assortment of prevention- and beauty-related products and press ahead with remodeling, and it plans to open 3 new stores and close 3 stores. The company says the content of its next medium-term management plan is under review and will be disclosed once finalized.

Item	FY ending March 2027 (Forecast)	Change
Net sales	285,000 million yen	+0.2%
Operating profit	5,100 million yen	-24.8%
Ordinary profit	6,000 million yen	-24.0%
Profit attributable to owners of parent	3,000 million yen	-6.3%

Shareholder Returns

The company positions the return of profits to shareholders as an important management issue and states that it will maintain a policy of progressive dividends. The annual dividend for the fiscal year under review is planned at 100 yen per share, and from the fiscal year ending March 2027 the company says it will pay dividends twice a year, an interim dividend and a year-end dividend.

Item	FY ended March 2026 (Actual)
Annual dividend per share	100 yen
Dividend payout ratio	69.8%

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.