COSMOS Pharmaceutical (3349): FY2025 Results Summary — 35th Consecutive Year of Sales Growth, Record Profits

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

Note: COSMOS Pharmaceutical’s fiscal year ends in May; the company labels the period covered here as the fiscal year ended May 2026 (shown below as FY5/26), which this site classifies as FY2025. COSMOS Pharmaceutical does not publish an English results presentation; this article is based on the company’s Japanese-language results presentation, with figures transcribed as reported.

COSMOS Pharmaceutical, operator of the Cosmos drugstore chain, reported net sales of ¥1,099,583 million for FY5/26, up 8.7% year on year — its 35th consecutive fiscal year of sales growth. Operating income rose 4.8% to ¥42,353 million, ordinary income rose 3.4% to ¥44,614 million, and net income rose 3.4% to ¥32,046 million, with each profit line reaching a record high. The company opened 105 new stores and closed 6, ending the year with 1,708 stores.

Consolidated Results (Full-Year Actual)

The results highlights are as follows. The presentation notes that sales have now increased for 35 consecutive fiscal years and that all profit lines set new record highs.

Item	FY5/26 (FY2025)	YoY
Net sales	¥1,099,583 million	+8.7%
Operating income	¥42,353 million	+4.8%
Ordinary income	¥44,614 million	+3.4%
Net income	¥32,046 million	+3.4%
New store openings	105 stores	—
Store closures	6 stores	—
Stores at fiscal year-end	1,708 stores	—

On same-store sales, the presentation explains that FY5/24 was strong as the company reinforced its discount strategy, FY5/25 turned negative year on year in reaction while profitability improved, and FY5/26 saw same-store sales improve from the second quarter onward.

Sales by Product Category and Region

By product category (all stores), general foods — the largest category — grew to ¥691.6 billion, at 111.7% of the prior year, while pharmaceuticals came to ¥143.9 billion (102.3%), cosmetics ¥97.8 billion (105.1%), miscellaneous goods ¥157.6 billion (104.4%), and other ¥8.8 billion (112.2%). Total all-store sales were 108.7% of the prior year.

Category	FY5/26 net sales	YoY (all stores, %)
Pharmaceuticals	¥143.9 billion	102.3
Cosmetics	¥97.8 billion	105.1
Miscellaneous goods	¥157.6 billion	104.4
General foods	¥691.6 billion	111.7
Other	¥8.8 billion	112.2
Total	—	108.7

By region, Kyushu remains the largest market at ¥471.5 billion. The company opened 105 stores (with 6 closures) during the year; of the 1,708 stores at fiscal year-end, 59 have dispensing pharmacies attached.

Region	FY5/26 net sales	New stores (closures)	Stores at FY-end
Kyushu	¥471.5 billion	25 (3)	673
Chugoku	¥151.8 billion	7 (1)	229
Kansai	¥151.4 billion	17	244
Kanto	¥112.1 billion	24 (1)	202
Chubu	¥109.6 billion	23	201
Shikoku	¥102.9 billion	9 (1)	159
Total	—	105 (6)	1,708

SG&A, Balance Sheet and Cash Flows

Selling, general and administrative expenses (all stores) came to 108.4% of the prior year in total. Salaries and bonuses were ¥88.4 billion (110.5% of the prior year), rent ¥26.5 billion (107.1%), advertising ¥2.0 billion (132.2%), utilities ¥14.0 billion (94.7%), depreciation ¥22.6 billion (110.7%), and other ¥33.4 billion (107.6%).

On the balance sheet, total assets stood at ¥596,485 million at fiscal year-end, an increase of ¥71,729 million (113.7% of a year earlier), with tangible fixed assets rising to ¥380,906 million (115.0%). Interest-bearing debt increased to ¥70,673 million (164.8% of a year earlier), and net assets rose to ¥283,700 million (110.2%).

Operating cash flow was an inflow of ¥58,790 million, up ¥6,323 million from ¥52,467 million in FY5/25. Investing cash flow was an outflow of ¥81,903 million, ¥26,454 million larger than the prior year’s outflow of ¥55,448 million, and financing cash flow was an inflow of ¥19,315 million. Cash and equivalents at fiscal year-end were ¥53,241 million, down ¥3,797 million from a year earlier.

Store Openings and Next Fiscal Year’s Plan

The presentation states that although labor shortages in the construction industry prevented some construction starts, the company opened 105 new stores in FY5/26, five more than planned. For FY5/27, it plans to open 120 new stores. It also plans its first store openings in Fukushima and Nagano prefectures in the current fiscal year, followed by Miyagi and Niigata prefectures the following year. The presentation does not include a consolidated earnings forecast for FY5/27.

Shareholder Returns

The annual dividend for FY5/26 is ¥82 per share (interim ¥37.5, year-end ¥44.5), an increase of ¥12 from the prior year. For FY5/27, the company forecasts an annual dividend of ¥84 per share (interim ¥42, year-end ¥42), a further increase of ¥2. The presentation notes that while inflation is raising capital expenditure per store, the company will continue aggressive new store openings.

Item	Interim	Year-end	Annual
FY5/26 dividend	¥37.5	¥44.5	¥82
FY5/27 dividend (forecast)	¥42	¥42	¥84

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.