Tsuruha Holdings (3391) Q4 2024 earnings summary

Executive summary

• Revenue rose 5.9% year-over-year to ¥1,027.5 billion, with operating profit up 8.0% to ¥49.2 billion and ordinary profit up 7.9% to ¥49.3 billion.

• Net income attributable to shareholders declined 4.6% to ¥24.1 billion due to a ¥4.2 billion goodwill impairment related to B&D.

• Store count increased by 64 to 2,653 domestic stores, with continued expansion in Thailand and ongoing store rationalization.

• Entered a capital and business alliance with AEON and Welcia Holdings to form Japan's largest drugstore group and pursue management integration.

Financial highlights

• Gross profit increased to ¥312.3 billion, with a gross margin of 30.4%.

• Operating margin improved to 4.8% from 4.7% year-over-year.

• EPS was ¥495.85, down from ¥519.90 the previous year.

• Total assets grew to ¥549.2 billion, and equity ratio rose to 51.3%.

• Cash and equivalents at year-end were ¥58.6 billion, down ¥20.4 billion year-over-year.

Outlook and guidance

• FY2025 guidance: revenue ¥1,080 billion (+5.1%), operating profit ¥53.5 billion (+8.7%), net income ¥30.1 billion (+24.9%).

• Annual dividend forecast raised to ¥310 per share.

• Focus on profitability through selective store openings, cost control, and digital transformation.