Sugi Holdings (7649) Q2 2025 earnings summary

Executive summary

• Interim net sales rose 12.9% year-over-year to ¥413.8 billion, with both product and dispensing sales contributing to growth.

• Operating income increased 17.3% year-over-year to ¥20.3 billion, reflecting strong operational performance.

• Net income for the interim period was ¥13.1 billion, up 27.2% year-over-year.

• Existing store sales grew 6.6% in the first half, driven by higher customer numbers and increased average spend.

Financial highlights

• Ordinary income for the period was ¥21.5 billion, up 18.4% year-over-year.

• Gross profit margin improved to 30.4% from 30.0% year-over-year.

• SG&A expenses increased 13.9% to ¥105.4 billion, with personnel and rent expenses rising in line with sales.

• Extraordinary income of ¥305 million was recorded, while extraordinary losses decreased to ¥2.2 billion.

• Comprehensive income reached ¥12.6 billion, a 22.8% increase from the prior year.

Outlook and guidance

• Management expects continued sales and profit growth, supported by store expansion and inbound demand.

• Full-year net sales forecast is ¥810.0 billion, up 8.8% from the previous period.

• Operating income is projected at ¥40.0 billion, a 9.2% increase year-over-year.

• Profit attributable to owners of parent is forecast at ¥25.0 billion, up 13.7% year-over-year.

• Cautions are noted regarding risks from drug price revisions and remuneration changes.