Sugi Holdings (TSE: 7649), which runs the Sugi Pharmacy (Sugi Drug) chain of drugstores and dispensing pharmacies, reported results for the first quarter of the fiscal year ending February 2027 — the three months from March 1 to May 31, 2026. Sales rose 10.1% to ¥270,175m and operating profit climbed 10.9% to ¥12,209m, while ordinary profit edged up 1.9% to ¥11,588m. Net profit attributable to owners, however, fell 67.5% to ¥6,901m against a year-earlier quarter inflated by a large one-off gain. Quarterly EPS was ¥38.14, down from ¥117.28.
Sales and operating profit grow; net profit falls on base effect
Sales and operating profit both advanced on new-store openings together with firm demand at the dispensing-pharmacy and cosmetics counters. EBITDA rose 7.9% to ¥17,069m. The steep drop in net profit is purely a base effect: the year-earlier first quarter had included a very large one-off gain that lifted prior-year net profit to ¥21,224m, a 246.6% jump at the time. Stripped of that item, the underlying earnings trend remains one of steady growth. Comprehensive income fell 67.1% to ¥7,063m, reflecting the same prior-year comparison.
Balance sheet and dividend
At May 31, 2026, total assets stood at ¥638,463m and net assets at ¥293,932m, for an equity ratio of 46.0%, down from 47.3% a year earlier. Net assets per share were ¥1,624.06. Sugi kept its dividend plan unchanged, guiding an interim payout of ¥15.00 and a year-end payout of ¥15.00 on a post-split basis (equivalent to ¥20.00 before the split). Together these give an effective annual dividend of ¥35.00, level with the ¥35.00 paid for the fiscal year ended February 2026 (¥15.00 interim plus ¥20.00 year-end).
Two-for-one stock split and Seki Yakuhin consolidation
The company announced a 2-for-1 split of its common stock effective September 1, 2026, aimed at improving share liquidity and lowering the investment threshold for individual investors. On the same date, Sugi plans to consolidate drugstore peer Seki Yakuhin Co. as a subsidiary; the earnings impact of that acquisition is still under review and is not yet reflected in guidance.
Full-year outlook unchanged
For the full year to February 2027, Sugi kept its guidance for sales of ¥1,092,000m (+8.1%), EBITDA of ¥77,400m (+12.7%), operating profit of ¥54,000m (+11.2%) and ordinary profit of ¥55,000m (+9.9%). Net profit is forecast at ¥32,800m, down 27.1% — again a one-off base effect rather than an operational decline — for EPS of ¥181.24 on a pre-split basis. The first-quarter result represents about 25% of the full-year sales target and 23% of the operating-profit target.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Sales (¥m) | 270,175 | 245,458 | +10.1% |
| EBITDA (¥m) | 17,069 | 15,818 | +7.9% |
| Operating profit (¥m) | 12,209 | 11,005 | +10.9% |
| Ordinary profit (¥m) | 11,588 | 11,372 | +1.9% |
| Net profit attrib. (¥m) | 6,901 | 21,224 | −67.5% |
| EPS (¥) | 38.14 | 117.28 | −67.5% |
| Equity ratio | 46.0% | 47.3% | −1.3pp |
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.