CREATE SD HOLDINGS (3148): FY2025 Results Summary — Record Earnings on Strong Food and Prescription Sales

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

Note: CREATE SD HOLDINGS labels its most recent completed fiscal year as “FYE May 2026” (the year ended May 31, 2026); on this site it is classified as FY2025, but the body text, tables and segment labels below keep the company’s own “FYE May 2026 / FYE May 2027” notation.

CREATE SD HOLDINGS posted record-high earnings for FYE May 2026. Consolidated net sales rose to 497,128 million yen (108.8% year on year), ordinary profit reached 25,232 million yen (107.8% YoY), and profit attributable to owners of parent was 16,990 million yen (108.3% YoY). Growth was led by the food products and prescriptions segments, with existing-store sales up 4.1 percentage points, while SG&A expenses, including personnel expenses, were kept under appropriate control.

Consolidated Results (Full-Year Actual)

Net sales grew as the everyday low price (EDLP) strategy and expansion of in-store pharmacies supported strong existing-store sales, with additional stockpiling demand following the closure of the Strait of Hormuz from March 2026. Gross profit margin edged down to 25.5% on a higher proportion of food sales and lower gross profit margins across departments. The ordinary profit margin was 5.1%.

Item	FYE May 2025	FYE May 2026	YoY (%)
Net sales (millions of yen)	457,093	497,128	108.8
Gross profit (millions of yen)	119,220	126,953	106.5
SG&A expenses (millions of yen)	96,594	102,983	106.6
Operating profit (millions of yen)	22,625	23,970	105.9
Ordinary profit (millions of yen)	23,414	25,232	107.8
Profit attributable to owners of parent (millions of yen)	15,685	16,990	108.3

Segment Results (CSD Non-consolidated)

On a CREATE SD CO., LTD. (CSD) non-consolidated basis, net sales rose to 488,229 million yen (107.9% YoY). Food products increased to 214,837 million yen (109.7% YoY), lifting its share to 44.0%, and prescriptions grew to 65,730 million yen (114.9% YoY). Existing-store net sales came in at 104.1% YoY (OTC 103.1%, prescriptions 111.0%).

Segment	FYE May 2025 (millions of yen)	FYE May 2026 (millions of yen)	YoY (%)
Medical and health products	119,079	127,846	107.4
OTC	61,867	62,115	100.4
Prescriptions	57,211	65,730	114.9
Cosmetics	50,107	52,899	105.6
Food products	195,835	214,837	109.7
Daily products	66,225	70,719	106.8
Other	21,066	21,926	104.1
Total	452,313	488,229	107.9

Store Network

The total number of stores at year end was 873 (including two companies newly consolidated as subsidiaries), comprising 811 drug stores, 48 dedicated prescription drug stores, and 14 supermarkets / fresh produce stores. In-store pharmacies numbered 442, raising the rate of in-store pharmacies to 54.5% (from 53.0% in FYE May 2025). During the year the company completed M&A of 9 dedicated prescription drug stores (SANEFU INC.) and 8 supermarkets (YAOHAN Holdings Co., Ltd.).

FYE May 2027 Plan

For FYE May 2027 the company plans net sales of 541,000 million yen (108.8% YoY), ordinary profit of 26,500 million yen (105.0% YoY), and profit attributable to owners of parent of 17,000 million yen (100.1% YoY). The plan assumes company-wide existing-store sales of 103.6% YoY and includes 50 drug store openings (8 closings) and 45 prescription drug store openings (4 closings), including M&A.

Item	FYE May 2026 (Actual)	FYE May 2027 (Plan)	YoY (%)
Net sales (millions of yen)	497,128	541,000	108.8
Gross profit (millions of yen)	126,953	137,000	107.9
SG&A expenses (millions of yen)	102,983	111,700	108.5
Operating profit (millions of yen)	23,970	25,300	105.5
Ordinary profit (millions of yen)	25,232	26,500	105.0
Profit attributable to owners of parent (millions of yen)	16,990	17,000	100.1

Shareholder Returns

The company states it will go beyond its previous approach of stable and continuous dividend increases to further enhance shareholder returns. The annual dividend per share was 93 yen for FYE May 2026, and the plan for FYE May 2027 is a further 3 yen increase to 96 yen, for a dividend payout ratio of 36.5%.

Item	FYE May 2026	FYE May 2027 (Plan)
Dividend per share (yen)	93	96
Dividend payout ratio (%)	–	36.5

Growth Strategy / Topics

The company plans to continue capital expenditure of over 20-30 billion yen to support sustainable growth (capital investment in FYE May 2026 fell slightly short of the initial 25 billion yen plan). It intends to pursue further M&A and expansion into new commercial areas, including the June 2026 acquisition of YAOFUKU Co., Ltd. (four supermarkets in Ueda City, Nagano Prefecture) as a subsidiary, alongside deepening dominance in the prescription drug store business and diversifying store formats.

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.