MatsukiyoCocokara & Co (3088) investor relations material

Executive summary

• Net sales rose 5.3% year-over-year to ¥1,117.4 billion, driven by consolidation of new subsidiaries, strong cosmetics sales, and private brand expansion.

• Operating profit reached ¥84.9 billion, up 3.5% year-over-year, with record high profit achieved through expense control.

• EBITDA increased 3.7% to ¥108.6 billion, and profit attributable to owners of parent grew 2.0% to ¥55.8 billion.

• The group executed strategies in differentiation, investment, and social contribution, including sustainability and governance initiatives.

• Major acquisition: Shinseidoyakkyoku co. ltd. was made a subsidiary, expanding the pharmacy network.

Financial highlights

• Gross profit margin improved to 35.2% from 35.1% year-over-year; gross profit at ¥372,235 million.

• SG&A expenses increased 6.4% due to new consolidations, but were offset by higher gross profit.

• Free cash flow was ¥38.9 billion, down ¥21.7 billion from the previous year due to tax revisions and growth investments.

• Total assets increased by ¥43.1 billion to ¥755.8 billion; equity ratio at 71.9%.

• Cash and cash equivalents at year-end were ¥119,670 million, up ¥7,919 million from the prior year.

Outlook and guidance

• FY2026 net sales forecasted at ¥1,155 billion (+3.4% YoY), with operating profit of ¥87.5 billion (+3.0% YoY).

• Same-store sales expected to grow 0.7% for the full year.

• Dividend policy targets DOE of 6% and payout ratio of 50% by FY2031; annual dividend for FY2026 projected at ¥56 per share.

• Strategies for FY2027 focus on differentiation, digital investment, store network expansion, and sustainability.

• Profit attributable to owners of parent for FY2027 forecast at ¥59,000 million (+5.8% YoY).