Kusuri no Aoki Holdings (3549): FY2025 Results Summary — Double-Digit Sales Growth on Record Store Openings

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

Note: Kusuri no Aoki Holdings’ fiscal year ends in May, and the company labels its latest completed fiscal year (ended May 20, 2026) as “FY May 2026.” This site classifies each company’s most recently completed fiscal year as FY2025; the labels in the body of this article follow the company’s own materials.

KUSURI NO AOKI HOLDINGS CO., LTD. (TSE Standard Market, Code: 3549), a drugstore and dispensing pharmacy chain, reported consolidated sales of 566,865 million yen for the fiscal year ended May 2026, 113.0% of the prior year and 101.2% of the company’s plan. Operating income was 27,096 million yen (101.9% year-on-year, 117.8% versus plan), while net income was 17,133 million yen (96.3% year-on-year). The company opened a record-high 111 drugstores during the year, including 37 supermarket stores acquired through M&A, bringing the total store count to 1,144.

Consolidated Results (Full-Year Actual)

Sales came in at 113.0% of the prior year overall and 103.1% at existing stores. At existing stores, the number of customers was 99.7% of the prior year while average spending per customer was 103.4%. The gross profit margin was 26.4% (–0.1 pt year-on-year, +0.6 pt versus plan), and the SGA ratio was 21.6% (+0.4 pt year-on-year, –0.1 pt versus plan). The operating income margin was 4.8% (–0.5 pt year-on-year, +0.7 pt versus plan). The company noted strong sales of summer seasonal products in the first half driven by extreme heat, and a high level of winter seasonal product sales in the second half due to the previous year’s influenza outbreak and strong demand for hay fever products.

Item (Million yen)	FY May 2026 (Actual)	FY May 2025 (Actual)	YoY change	vs. Plan
Sales	566,865	501,470	113.0%	101.2%
Gross profit	149,497	132,956	112.4%	103.6%
SGA expenses	122,400	106,354	115.1%	100.9%
Operating income	27,096	26,601	101.9%	117.8%
Ordinary income	27,722	27,513	100.8%	122.1%
Net income	17,133	17,786	96.3%	110.5%

Results by Product Division

By product division, Food remained the largest category at 53.2% of sales, growing to 301,526 million yen (117.2% year-on-year) driven by new store openings; within Food, fresh food sales reached 71,409 million yen (121.4%). Dispensing sales grew to 59,831 million yen (115.3%) on an increase in pharmacy openings. Health (104.4%), Beauty (106.9%), and Daily commodities (108.0%) also grew, with Daily commodities supported by higher average selling prices due to larger pack sizes for detergents and other products.

Division	FY May 2026 (Million yen)	Composition ratio	FY May 2025 (Million yen)	YoY change
Health	46,367	8.2%	44,392	104.4%
Beauty	64,412	11.4%	60,243	106.9%
Daily commodities	94,726	16.7%	87,689	108.0%
Food	301,526	53.2%	257,260	117.2%
Of which, fresh food	71,409	12.6%	58,837	121.4%
Dispensing	59,831	10.6%	51,885	115.3%
Total	566,865	100.0%	501,470	113.0%

Store Openings and M&A

The company opened 111 drugstores and closed 8 during the year, and opened 38 dispensing pharmacies while closing 9. In addition, 37 supermarket stores were acquired through M&A (5 stores of Miwa Shoten, 20 stores of Spot, and 12 stores of CUPID), taking the total number of stores to 1,144 at fiscal year-end. The ratio of stores with dispensaries stood at 62.5% (66.1% at the end of FY May 2025). By area, the sales composition of areas outside Hokushinetsu rose 2.2 pt, from 57.6% to 59.8%, with sales growing in all areas — including Tohoku at 131.6% and Shikoku at 197.5% of the prior year. Cumulatively, the company has executed M&A transactions involving 21 companies, totaling ¥130.3 billion in sales and 167 stores.

Forecast for the Fiscal Year Ending May 2027

For the fiscal year ending May 2027, the company forecasts sales of 640,000 million yen (112.9% year-on-year) and operating income of 32,000 million yen (118.1%). The plan assumes existing-store sales growth of 104.1% for the full year (102.9% in the first half, 105.4% in the second half). The company plans to open 90 drugstores and 31 dispensing pharmacies while closing 12 drugstores, bringing the total store count to a planned 1,204 at fiscal year-end.

Item (Million yen)	FY May 2027 (Plan)	FY May 2026 (Actual)	YoY change
Sales	640,000	566,865	112.9%
Gross profit	167,317	149,497	111.9%
SGA expenses	135,317	122,400	110.6%
Operating income	32,000	27,096	118.1%
Ordinary income	30,800	27,722	111.1%
Net income	19,000	17,133	110.9%

Shareholder Returns

The company undertook a fundamental review of its shareholder return policy, increasing the dividend payout ratio to 30%. It implemented a 40th anniversary commemorative dividend (+¥40) at the end of FY May 2026, and resolved a share buyback of up to 6 million shares (¥24.0 billion), which it will implement flexibly in response to the business environment. Under its cash allocation policy, the company plans growth investments of ¥200 billion cumulatively over the five-year period from FY May 2026 to FY May 2030, centered on store development.

Medium-Term Plan

FY May 2026 was the first year of the Fourth Medium-term Management Plan (FY May 2026–FY May 2030), under which the company targets sales of 800 billion yen and operating income of 44 billion yen (5.5% margin) by FY May 2030, aiming for a CAGR of 10% for both sales and operating income, with 400 store openings including M&A (30%, or 120 stores, through M&A). Key strategies are improving produce expertise, strengthening the earnings structure — including expanding dispensing sales to ¥100 billion and raising the private brand ratio to 10.0% (¥80 billion) — and promoting M&A. Fresh food sales are targeted to increase to ¥130.0 billion (16.2% composition ratio) from ¥58.8 billion. Private brand “A&” sales reached ¥38.4 billion (6.8% of total sales, 128% of the prior year) in FY May 2026. Under its 50th Anniversary Vision, the company targets sales of ¥1 trillion for FY May 2035, placing it among the top 20 retailers.

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