Matsukiyococokara & Company, Ltd. (TSE Prime: 3088), Japan's leading drugstore and dispensing pharmacy operator, reported consolidated full-year results for the fiscal year ended March 31, 2026 under Japanese GAAP. Net sales reached a record ¥1,117.4 billion, up 5.3% from ¥1,061.6 billion, while EBITDA (operating profit plus depreciation and goodwill amortization) rose 3.7% to ¥108.6 billion. Operating profit increased 3.5% to ¥84.9 billion, ordinary profit advanced 4.2% to ¥89.9 billion, and profit attributable to owners of the parent grew 2.0% to ¥55.8 billion. Basic EPS came in at ¥139.94 (vs. ¥133.85); ROE held steady at 10.5%, the operating margin slipped marginally to 7.6%, and comprehensive income rose 7.4% to ¥58.1 billion.
Cosmetics and inbound carry the Matsumotokiyoshi flagship
By segment, the Matsumotokiyoshi Group remained the principal growth engine, with sales up 6.6% to ¥711.4 billion and segment profit up 4.9% to ¥60.8 billion, supported by strong cosmetics sales driven by foot-traffic recovery in urban areas, commercial districts and tourist-heavy locations, and by renewed inbound tourist demand. The Cocokara Fine Group posted a modest sales decline of 0.3% to ¥390.0 billion and segment profit of ¥23.5 billion (-1.5%), reflecting a planned scrap-and-build store-optimization program. The newly added And Company segment — an intermediate holding company established August 1, 2025 that absorbed the newly acquired Shinseido Pharmacy (consolidated from October 1, 2025) — contributed ¥12.9 billion in sales and ¥0.2 billion in segment profit. Management Support generated ¥683.6 billion in sales (+4.3%) with segment profit down 15.1% to ¥17.1 billion.
By product category, cosmetics drove growth at ¥381.3 billion (+7.9%), followed by pharmaceuticals at ¥387.7 billion (+5.1%), foods at ¥98.0 billion (+4.7%), and daily necessities essentially flat at ¥194.1 billion. The domestic store count expanded to 3,618 stores (including 1,112 dispensing pharmacies) from 3,499 a year earlier, while overseas store count reached 100 stores, including a new-market entry into Malaysia alongside existing operations in Thailand, Taiwan, Vietnam, Hong Kong and Guam. Private-brand initiatives celebrated the 10th anniversary of the "matsukiyo" PB, expanded the new "MQURE derma×" skincare line, and launched the renovated "SHIBUYA SCRAMBLE FLAG" flagship.
M&A becomes a structural pillar
M&A activity was a key strategic theme. The group acquired 100% of Shinseido Pharmacy (Kyushu-based, 119 stores) for ¥11.5 billion in cash, generating ¥5.15 billion of newly recorded goodwill amortized over 18 years. As a subsequent event, in February 2026 the group agreed to acquire Universal Drug Co., Ltd. (19 stores in Tokyo/Saitama) for ¥1.0 billion, completed April 1, 2026. Period-end goodwill stood at ¥98.3 billion, of which ¥91.2 billion still relates to the 2021 Cocokara Fine share exchange. Impairment losses fell to ¥1.68 billion from ¥2.27 billion, allocated mainly across the Matsumotokiyoshi (¥723 million), Cocokara Fine (¥865 million) and And Company (¥103 million) segments. Total assets grew to ¥755.8 billion (+¥43.1 billion) on inventory, receivables and cash build, with net assets of ¥544.5 billion and an equity ratio of 71.9%.
Dividend lifted to ¥50; FY27 targets ¥59 billion net profit
The annual dividend was raised to ¥50.00 per share (¥24 interim + ¥26 year-end) from ¥44.00, with a consolidated payout ratio of 35.7% and DOE of 3.8%. For FY2027, management guides net sales of ¥1,155.0 billion (+3.4%), EBITDA of ¥113.0 billion (+4.1%), operating profit of ¥87.5 billion (+3.0%), ordinary profit of ¥91.5 billion (+1.8%), and net profit attributable to owners of ¥59.0 billion (+5.8%) with EPS guidance of ¥148.02. The full-year FY27 dividend is projected at ¥56.00 (¥28 interim + ¥28 year-end), implying a 37.8% payout ratio. The company reiterated FY2031 group targets of ¥1.3 trillion in organic sales (plus M&A growth), EBITDA margin above 13%, ROE above 12%, payout ratio of 50% and DOE of 6%, supported by a capital-allocation framework of 45% growth investment, 45% shareholder returns and 10% balance-sheet strengthening. The "Matsumotokiyoshi" brand ranked 63rd in Interbrand Best Japan Brands 2026, retaining its position as Japan's top drugstore brand.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ billion) | 1,117.4 | 1,061.6 | +5.3% |
| EBITDA (¥ billion) | 108.6 | 104.7 | +3.7% |
| Operating profit (¥ billion) | 84.9 | 82.0 | +3.5% |
| Ordinary profit (¥ billion) | 89.9 | 86.3 | +4.2% |
| Net profit attrib. to owners (¥ billion) | 55.8 | 54.7 | +2.0% |
| Basic EPS (¥) | 139.94 | 133.85 | +4.5% |
| Operating margin | 7.6% | 7.7% | -0.1pp |
| ROE | 10.5% | 10.6% | -0.1pp |
| Annual dividend (¥) | 50.00 | 44.00 | +13.6% |
| FY27 net profit guidance (¥ billion) | 59.0 | — | +5.8% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.