Tsuruha Holdings (3391) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 reached ¥557.8 billion, with operating profit at ¥28.4 billion and net profit at ¥20.4 billion, driven by strong pharmaceuticals, food, and dispensing pharmacy growth, and effective SG&A cost control.

• Existing store sales increased 2.1% year-over-year, with notable growth in dispensing pharmacy and food, though cosmetics and OTC drugs underperformed.

• 53 new stores opened and 35 closed, resulting in a net increase of 18 stores and 2,676 directly managed stores at period-end.

• Ongoing preparations for business integration with WELCIA HOLDINGS and AEON, with a vision announcement in December and new mid-term plan in April.

• Net profit was boosted by gains from the sale of investment securities.

Financial highlights

• Gross profit margin was 30.3% for the quarter, with gross profit at ¥168,782 million.

• Operating profit margin improved to 5.1% for the half-year and 5.6% for the latest quarter.

• SG&A ratio improved to 25.2%, down 0.8 points year-over-year.

• Extraordinary items included a ¥6.6 billion gain on sale of investment securities and a ¥1.6 billion provision for store closures.

• Net income attributable to owners was ¥20,365 million, with basic EPS of ¥83.64 (post-stock split basis).

Outlook and guidance

• Integration with WELCIA HOLDINGS and AEON is scheduled, with a vision announcement in December and a new mid-term plan in April.

• Full-year consolidated earnings and year-end dividend forecasts remain undetermined due to the pending impact of the business integration.

• Financial targets and synergy effects will be disclosed after a thorough review at the full-year results.