Tsuruha Holdings (3391) Q1 2025 earnings summary

Executive summary

• Q1 net sales rose 5.2% year-over-year to JPY273.4 billion, with operating profit up 7.1% to JPY15.1 billion, driven by strong sales in prescription drugs, food, daily goods, and cosmetics, despite cost increases and an irregular 9.5-month fiscal term.

• Existing store sales increased 2.3% year-over-year, with gross profit margin improving by 0.2 percentage points due to better margins in daily goods and a higher dispensing ratio.

• Cost control kept SG&A expense ratio flat, and the company maintained revenue and profit growth in line with its plan.

Financial highlights

• Net sales: JPY273.4 billion (+5.2% YoY); operating profit: JPY15.1 billion (+7.1% YoY); net profit attributable to owners: JPY8.97 billion (+8.5% YoY).

• Gross profit margin increased by 0.2% YoY; SG&A expenses ratio remained flat.

• Existing store sales up 2.3% YoY; unit price per customer rose 2.7%, while number of customers fell 0.4%.

Outlook and guidance

• Full-year net sales forecast at JPY1,080 billion (+5.1% YoY); operating profit forecast at JPY53.5 billion (+8.7% YoY).

• Excluding one-time expenses from the fiscal year change, operating margin is expected at 5.1% and ROE at 10.8% (annualized).

• H2 revised to 3.5 months due to the fiscal year change, with one-time SG&A expenses of JPY4.3 billion recognized.

• Dividend payout ratio expected at 58.5%, with annual dividend maintained at previous year’s level despite the shorter fiscal period.