CREATE SD HOLDINGS CO.,LTD.
3148・Prime Market・Retail Trade
Business
Create SD Holdings Co., Ltd. is a group holding company headquartered in Yokohama, Kanagawa Prefecture, operating drugstores with attached dispensing pharmacies primarily in the Kanto and Tokai regions. Its core subsidiary, Create SD Co., Ltd., handles the drugstore business (approximately 98% of sales), providing integrated sales of pharmaceuticals, cosmetics, food, and daily necessities alongside dispensing services. In the nursing care domain, the company operates 2 paid nursing homes and 37 half-day day service facilities, positioning itself as a comprehensive healthcare support provider covering "lifestyle, prevention, medical care, and nursing care." As of the end of FY2025 (ending May 2025), the company had 787 drugstores and 455 dispensing pharmacies (38 specialty pharmacies plus 417 in-store pharmacies), with sales reaching ¥457,093 million.
Business Model
The company is based on a small-trade-area format in suburban and residential locations, ensuring frequent everyday store visits through EDLP (Every Day Low Price) initiatives. By actively co-locating dispensing pharmacies, it captures prescription revenue (¥57,211 million in FY2025 (ending May 2025)), enhancing one-stop convenience through the synergy between merchandise sales and dispensing. Capital expenditures are funded by operating cash flow (¥23,625 million) and internal funds, maintaining near debt-free financial soundness while continuing to open 40–50 stores per fiscal year.
Company Strengths
Revenue increased 35% over five fiscal periods, from ¥338,476 million in FY2021 (ended May 2021) to ¥457,093 million in FY2025 (ended May 2025). Operating income also expanded from ¥18,629 million to ¥22,625 million over the same period, achieving an 11.9% year-on-year increase in FY2025 (ended May 2025). Net income attributable to owners of parent also rose 14.6% to ¥15,685 million, highlighting the continuity of simultaneous revenue and profit growth.
In FY2025 (ended May 2025), 37 new dispensing pharmacies were opened, building a network of 455 stores in total. Dispensing pharmacy sales reached ¥57,211 million (up 13.3% year-on-year), recording the highest growth rate among all business segments. Both the number of prescriptions handled and the average unit price have trended steadily upward, supported by strengthened collaboration with nearby medical institutions and enhanced capture of various fee add-ons.
Cash flow from operating activities in FY2025 (ended May 2025) secured ¥23,625 million, exceeding capital expenditures of ¥21,908 million. All required funds were covered entirely by internal resources, and net assets were maintained at ¥142,720 million even while paying dividends of ¥4,573 million under financing activities. This demonstrates a growth model that does not rely on financial leverage.
ENVALITH's Perspective
Performance Trend
Revenue expanded 41.7% over five periods, from ¥350,744 million in FY2022 (ended May 2022) to ¥497,128 million in FY2026 (ended May 2026). Operating profit increased 31.9% over the same period, from ¥18,176 million to ¥23,970 million. In FY2026 (ended May 2026), revenue growth was boosted by the opening of 33 new stores and 28 dispensing pharmacies, in addition to the M&A effects from Sanef and Yaoso Holdings. On the other hand, an increase in salaries and allowances (up ¥3,587 million year on year) and impairment losses of ¥1,538 million (versus ¥950 million in the previous period) constrained improvement in profit margins. Regarding the external environment, despite concerns over a slowdown in personal consumption due to continued price increases, existing-store sales remained above the previous year's level thanks to EDLP measures and strengthened dispensing pharmacy operations. For FY2027 (ending May 2027), the company forecasts revenue of ¥541,000 million (up 8.8%) and operating profit of ¥25,300 million (up 5.5%).
Growth Strategy
Aiming for sales of ¥680.0 billion in FY2030 (ending May 2030) through opening 30-40 stores per fiscal period, M&A, and strengthening of dispensing pharmacy operations
In FY2026 (ending May 2026), 33 new stores were opened, building a 811-store network by fiscal year-end. Combined with 9 store closures including scrap-and-build, this resulted in a net increase of 24 stores. Under the medium-term plan 'Next STAGE 2030', the company will continue opening stores each fiscal period, aiming to increase store density in the Kanto and Tokai areas while expanding into new areas.
In FY2026 (ending May 2026), 28 new pharmacies were opened, establishing a 490-location network by fiscal year-end (48 specialty pharmacies and 442 in-store pharmacies). Strengthened calculation of various add-on fees and collaboration with medical institutions led to steady growth in the number of prescriptions filled and unit prices. Dispensing pharmacy sales grew 114.9% year on year, becoming a key driver of profitability improvement.
In August 2025, Sanef (9 specialty dispensing pharmacy stores) was made a subsidiary and subsequently absorbed through merger; in October 2025, Yaohan Holdings (8 food supermarket stores) was consolidated as a subsidiary. Supermarket business sales expanded rapidly to ¥6,600 million (255.2% year on year). The company plans to continue pursuing store acquisitions, area expansion, and business diversification through M&A.
Based on the medium-term management plan formulated in July 2025, the company is steadily executing its three pillars: (1) growth strategy, (2) financial strategy, and (3) promotion of sustainability management. It aims to achieve sustainable enhancement of corporate value as an indispensable presence for stakeholders in local communities. For FY2027 (ending May 2027), sales of ¥541,000 million and operating profit of ¥25,300 million are forecast.
Last updated: July 17, 2026