Sugi Holdings (7649) Q4 2025 earnings summary

Executive summary

• Net sales for FY ended February 2025 rose 17.9% year-over-year to ¥878,021 million, with strong growth in both prescription and product sales.

• Net income increased 16.9% year-over-year to ¥25,689 million, and EBITDA grew 19.0% to ¥60,435 million.

• Operating profit rose 16.2% to ¥42,563 million, and comprehensive profit increased 18.3% to ¥25,589 million.

• Existing store sales for Sugi Pharmacy grew 5.9% for the full year, with prescription sales up 7.7% and product sales up 5.4%.

• The number of prescriptions filled increased 9.4% year-over-year, with a slight rise in price per prescription.

Financial highlights

• Gross profit margin improved to 31.3% from 30.7% year-over-year.

• Return on equity improved to 10.6% from 9.5% year-over-year.

• Net assets per share increased to ¥1,385.37, with a shareholders' equity ratio of 50.6%.

• Cash and cash equivalents at period end were ¥52,736 million, up from ¥37,406 million year-over-year.

• SG&A expenses increased 20.9% year-over-year, mainly due to higher personnel and administrative costs.

Outlook and guidance

• FY ending February 2026 forecasts net sales of ¥1,000,000 million, up 13.9% year-over-year.

• Net income is projected to rise 32.4% to ¥34,000 million, with EBITDA expected at ¥67,900 million.

• Operating profit forecasted at ¥49,500 million (+16.3%), and net profit per share at ¥187.88.

• 120 new drugstores and 20 new prescription business stores planned, with ¥32.2 billion in capital investment.

• Dividend forecast for FY ending February 2026 is ¥35.00 per share.