Genky DrugStores FY26 Operating Profit Climbs 14% to ¥10.99 Billion as R-Format Stores Drive Sales Past ¥220 Billion

Genky DrugStores Co., Ltd. (TSE: 9267), the Fukui-based operator of food-led discount drugstores across central Japan, reported consolidated results for the fiscal year ended June 20, 2026 under Japanese GAAP. Revenue rose 9.9% to ¥220,638 million, an increase of ¥19,852 million, while operating profit climbed 13.7% to ¥10,985 million, ordinary profit rose 12.7% to ¥11,157 million and net profit attributable to owners of the parent gained 11.4% to ¥7,875 million. Basic earnings per share were ¥258.51, up from ¥232.51, and the operating margin widened to 5.0% from 4.8%.

R-format rollout reshapes the store base

Almost all of the year's growth came from the group's compact "R" store format. Genky opened R stores in Aichi (28), Shiga (10), Gifu (8), Ishikawa (7) and Fukui (4), closed three large-format stores and converted eight more to the R format, ending the year with 506 R stores and 28 large-format stores — 534 in total. R-store sales jumped 16.1% to ¥197,228 million, or 89.4% of group revenue, up from 84.6% a year earlier, while large-format sales fell 24.5% to ¥23,113 million, or 10.5% of the total. Other sales were ¥297 million.

A food-led drugstore, not a pharmacy chain

By product category, food accounted for ¥156,911 million — roughly 71% of revenue — ahead of sundries at ¥25,348 million, cosmetics at ¥20,285 million, pharmaceuticals at ¥16,475 million and other goods at ¥1,617 million. Management noted that prices of goods and services rose amid continuing global instability and that, with the cost of everyday necessities climbing, consumers' cost-saving mindset intensified. The group's answer is a chain-store model built around the concept of "a store near home where you can save on living costs", using concentrated openings to build dominant regional share.

Balance sheet and cash flow

Total assets grew to ¥145,598 million from ¥127,326 million, and net assets to ¥61,373 million from ¥53,428 million, leaving the equity ratio at 42.0% against 41.8%. Book value per share was ¥2,006.00, up from ¥1,752.30. Return on equity eased to 13.8% from 14.2%, while ordinary profit to total assets was unchanged at 8.2%. Operating cash flow rose to ¥16,975 million from ¥12,597 million, but the investing outflow widened to ¥20,278 million from ¥15,618 million — more than the operating inflow — with financing activities providing ¥4,947 million. Year-end cash and equivalents stood at ¥7,866 million, up from ¥6,221 million. In other words, the store-opening programme is being part-funded by borrowing.

Dividend held flat, double-digit revenue growth guided

The FY6/2026 dividend was ¥13.00 per share (¥6.50 interim plus ¥6.50 year-end), for total payments of ¥396 million and a consolidated payout ratio of 5.0%, down from 5.6%; dividend on equity was 0.6%. The company plans an unchanged ¥13.00 for FY6/2027. Full-year guidance calls for revenue of ¥244,000 million (+10.6%), operating profit of ¥12,000 million (+9.2%), ordinary profit of ¥12,100 million (+8.4%) and net profit of ¥8,200 million (+4.1%), with EPS of ¥268.79. For the first half, management guides revenue of ¥119,000 million (+8.9%) and operating profit of ¥5,840 million (+2.1%).

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