MatsukiyoCocokara Q1 Operating Profit Rises 8.5% as the Store Count Passes 3,650

Both retail banners lifted profit

MatsukiyoCocokara & Co. (TSE: 3088) published consolidated first-quarter results for FY3/2027 on August 10, 2026, covering April 1 to June 30, 2026 under Japanese GAAP. Net sales rose 5.7% to ¥289,348 million, EBITDA 8.9% to ¥27,662 million and operating profit 8.5% to ¥21,487 million. Ordinary profit added 8.8% to ¥22,822 million and net profit attributable to shareholders 14.9% to ¥14,865 million, for earnings per share of ¥37.59 against ¥32.30.

The Matsumotokiyoshi Group business, which supplies close to two-thirds of retail sales, grew revenue 4.8% to ¥183,891 million and segment profit 12.3% to ¥16,100 million. Management pointed to the roughly 173 million customer contacts the group now records, the merging of stores with its app and online shop, and a private-brand programme that marked the tenth anniversary of the matsukiyo label with a new brand vision, redesigned packaging and fresh lines including the SPICA diet and daily-care range. The banner ended June with 1,992 domestic stores, 488 of them with a dispensing counter, plus 105 overseas — 37 in Thailand, 24 in Taiwan, 21 in Vietnam, 19 in Hong Kong, three in Malaysia and one in Guam.

The Cocokara Fine Group business held revenue essentially flat at ¥97,453 million but lifted segment profit 9.0% to ¥5,436 million, the result of a deliberate push on profitability through redeployment of staff and a scrap-and-build programme. Cocokara Fine Healthcare absorbed Iwasaki Kokendo on April 1, 2026, and the banner closed the quarter with 1,527 stores, 538 of them dispensing.

A third retail segment appears

The AndCompany business — the intermediate holding company created last year around Shinseido Pharmacy — appears with a full quarter for the first time, contributing ¥6,181 million of revenue and ¥12 million of segment profit. It absorbed Universal Drug, a 19-store chain in Tokyo and Saitama, on April 1, 2026, and finished June with 131 stores, of which 97 are dispensing pharmacies. The group frames this vehicle as a "federation" structure designed to make it easier for independent chains to join.

The management support segment's revenue rose 17.2% to ¥216,330 million and its segment profit jumped 146.8% to ¥43,060 million, but neither figure survives consolidation: it buys merchandise for and takes dividends from the operating companies, and the adjustment line removed ¥214,509 million of revenue and ¥43,122 million of profit. AppBrew, operator of the LIPS cosmetics media platform, was newly consolidated into this segment.

Fewer shares, a smaller balance sheet, a higher equity ratio

Total assets fell ¥18,878 million to ¥736,953 million, as an ¥18,273 million reduction in cash and deposits, ¥5,814 million in investment securities and ¥3,510 million in receivables outweighed a ¥6,453 million build in merchandise. Liabilities dropped ¥12,265 million to ¥199,114 million, chiefly on a ¥12,236 million fall in income taxes payable and ¥2,496 million in the bonus provision. Net assets slipped ¥6,612 million to ¥537,838 million: retained earnings added ¥4,726 million, but capital surplus fell ¥10,544 million as the group cancelled treasury stock, taking shares issued from 410,275,830 to 405,658,130.

Because assets shrank faster than equity, the equity ratio rose a full point to 72.9%. Impairment charges of ¥115 million were booked in the quarter, ¥85 million of it at Matsumotokiyoshi and ¥30 million at Cocokara Fine — small enough that they do not change the picture.

Guidance points to a softer second quarter

The company left the forecast published on May 13, 2026 in place: for the year to March 2027, net sales of ¥1,155,000 million (+3.4%), EBITDA of ¥113,000 million (+4.1%), operating profit of ¥87,500 million (+3.0%), ordinary profit of ¥91,500 million (+1.8%) and net profit of ¥59,000 million (+5.8%), for earnings per share of ¥149.18.

The half-year numbers are the ones worth reading closely. Guidance for the six months to September is ¥572,000 million of sales (+4.2%) but operating profit of ¥39,500 million, a 2.3% decline, and ordinary profit of ¥41,500 million, down 2.9%. Set against a first quarter that grew operating profit 8.5%, that implies management expects the second quarter to go backwards. The annual dividend forecast is ¥56.00 per share, made up of two ¥28.00 payments, against ¥50.00 for FY3/2026 — a 12.0% increase, also unchanged.

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.