Kusuri no Aoki First-Quarter Net Profit Jumps 36.4% to ¥6,866 Million as Fresh-Food Sales Surge 43% and Its Shikoku Stores More Than Double Revenue

Food and fresh produce power the quarter

Kusuri no Aoki Holdings Co., Ltd. (TSE: 3549), the Ishikawa-based drugstore chain, published consolidated results for the first quarter of FY5/2027, the period from May 21 to August 20, 2026, on October 1, 2026 under Japanese GAAP. Net sales rose 13.8% to ¥159,042 million, operating profit 16.0% to ¥8,424 million, ordinary profit 17.6% to ¥8,568 million and profit attributable to owners of the parent 36.4% to ¥6,866 million. Earnings per share rose 43.9% to ¥72.30, because the average share count fell to 94,963,067 from 100,173,422 a year earlier. The quarterly statements were reviewed by the company's auditor on a voluntary basis.

The company is pushing a "Food & Drug" format, opening larger stores that carry a full grocery range and building its know-how in fresh produce, so customers can do all their shopping in one place. That showed in the mix: food sales rose 15.3% to ¥65,812 million and fresh food, covering fruit and vegetables, meat, fish and prepared dishes, 42.8% to ¥22,574 million, lifting its share of sales from 11.3% to 14.2%. Dispensing-pharmacy sales grew 13.9% to ¥15,931 million. Traditional drugstore lines grew far more slowly: household and life products 4.6%, beauty 4.5%, while health products, which include medicines, slipped 0.2%.

Shikoku sales more than double

The chain opened 21 drugstores, nine in Hokushinetsu, six in Shikoku, five in Tokai and one in Kanto, plus 20 in-store dispensing pharmacies, and closed five drugstores and two pharmacies. It ended the quarter with 1,154 outlets: 1,123 drugstores, 710 of them with a pharmacy, six stand-alone pharmacies and 25 supermarkets. By region, sales in its home Hokushinetsu area rose 17.1% to ¥67,372 million, while Shikoku, where it now has 35 stores, jumped 152.9% to ¥7,571 million. Growth was slowest in Kanto, at 3.0%, and Tokai, at 4.4%.

Margins edge up; tax charge falls

Gross profit rose 14.1% to ¥42,132 million, slightly faster than sales, and selling, general and administrative expenses rose 13.6% to ¥33,707 million, so operating profit grew faster than revenue. Depreciation rose to ¥3,890 million from ¥3,327 million and goodwill amortisation to ¥414 million from ¥283 million. Pre-tax profit rose 18.6% to ¥8,570 million, but income taxes fell to ¥1,703 million from ¥2,196 million, which is why net profit grew twice as fast as pre-tax profit; the filing does not explain the lower tax charge. Comprehensive income rose 51.0% to ¥8,559 million on a ¥1,693 million gain on securities held.

Balance sheet and outlook

Total assets fell ¥4,487 million to ¥406,449 million from May 20, 2026, as other receivables fell ¥6,386 million and trade receivables ¥3,360 million, while buildings and investment securities rose. Liabilities fell ¥8,489 million, including ¥6,136 million less long-term borrowing and ¥2,243 million less income tax payable, and the equity ratio rose to 35.7% from 34.3%. Kusuri no Aoki kept the forecasts it published on July 2, 2026: for the first half, operating profit of ¥15,500 million (+14.9%) on sales of ¥318,000 million; for the full year, sales of ¥640,000 million (+12.9%), operating profit of ¥32,000 million (+18.1%), ordinary profit of ¥30,800 million (+11.1%) and net profit of ¥19,000 million (+10.9%), or ¥200.08 per share. The planned dividend is ¥32.00 at the interim and ¥32.00 at year end, ¥64.00 in total, against ¥56.00 for FY5/2026, of which ¥40.00 was a 40th-anniversary commemorative payment.

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.