Sugi Holdings (7649) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 13.0% year-over-year to ¥200.96 billion, with EBITDA up 11.9% and operating income up 10.6%.

• Existing store sales grew 6.9% year-over-year, driven by increased out-of-home and inbound demand, as well as a cold epidemic.

• Prescription sales remained robust despite drug price revisions, supported by higher prescription volumes.

• Continued expansion with 29 new store openings and 2 closures, bringing total stores to 1,745 at quarter-end.

• Profit attributable to owners of parent grew 10.1% year-over-year to ¥6.12 billion.

Financial highlights

• Net sales: ¥200.96 billion, up 13.0% year-over-year.

• Operating income: ¥8.61 billion, up 10.6% year-over-year.

• Net income: ¥6.12 billion, up 10.1% year-over-year.

• EBITDA: ¥12.91 billion, up 11.9% year-over-year.

• Gross profit margin increased to 29.9% from 29.8% year-over-year.

Segment performance

• Sugi Pharmacy business: Net sales ¥186.36 billion (+13.6% YoY), gross profit margin 30.1%.

• Japan business: Net sales ¥12.5 billion (+1.7% YoY), gross profit margin 21.9%.

• Prescription sales: ¥43.04 billion (+10.7% YoY), with 3,975,775 prescriptions filled (+10.2% YoY).

• Product sales: Strong growth in healthcare, beauty, household, and foods segments.