CREATE SD HOLDINGS CO.,LTD.
3148・Prime Market・Retail Trade
Drugstore Business
Core business accounting for approximately 98% of Group sales. Operates dispensing pharmacy-attached drugstores centered on the Kanto and Tokai regions.
| Period | Current | Previous | Change |
|---|---|---|---|
| Drugstore Business sales (full year) | ¥487,966 million | ¥452,327 million (estimate) | ↑ |
| Dispensing pharmacy sales (full year) | ¥65,730 million | ¥57,207 million (estimate) | ↑ |
| Food sales (full year) | ¥214,837 million | ¥195,843 million (estimate) | ↑ |
| Number of drugstores (fiscal year end) | 811 stores | 787 stores (estimate) | ↑ |
| Number of dispensing pharmacies (fiscal year end, specialized + attached) | 490 stores (48 specialized + 442 attached) | 464 stores (39 specialized + 425 attached) (estimate) | ↑ |
| Supermarket Business sales (full year) | ¥6,600 million | － | ↑ |
| Consolidated sales (company-wide) | ¥497,128 million | ¥457,093 million | ↑ |
| Consolidated operating profit (company-wide) | ¥23,970 million | ¥22,625 million | ↑ |
| Operating margin (company-wide) | 4.8% | 4.9% | ↓ |
Business Details
Handled by Create SD Holdings Co., Ltd., primarily engaged in the sale of pharmaceuticals, cosmetics, food, and daily sundries, as well as dispensing services. The company operates a small trade area, high visit-frequency model that combines price appeal through EDLP (Everyday Low Price) initiatives with a "family pharmacy" function via attached dispensing pharmacies. As of the end of FY2026 (ending May 2026), the company operated 811 drugstores and 873 dispensing pharmacies (48 specialized + 442 attached). Through M&A, the company acquired a supermarket (Yaohan Food Center) and a specialized dispensing pharmacy chain (San-F), expanding its scale.
Recent Overview
Expanded scale through M&A and new store openings, achieving higher sales and profit with sales of ¥497,128 million and operating profit of ¥23,970 million.
In FY2026 (ending May 2026), the company opened 33 new stores (closing 9) and opened 28 new dispensing pharmacies (closing 2). In August 2025, the company made San-F (9 specialized dispensing pharmacies) a subsidiary (absorbed via merger in March 2026), and in October 2025 made Yaohan Holdings (8 food supermarkets) a consolidated subsidiary. Continued EDLP initiatives kept existing store sales above the prior year level. Despite a rebound effect from the prior-year cold and flu outbreak, growth in food (up 109.7% year on year) and dispensing pharmacy (up 114.9%) drove higher sales and profit. Salaries and allowances increased to ¥42,395 million (from ¥38,808 million in the prior fiscal year) due to rising personnel costs, but operating profit still increased 5.9% thanks to securing gross profit from higher sales and appropriate control of selling, general and administrative expenses.
Key Products
Growth Drivers
- Continued promotion of EDLP initiatives keeping existing store sales above the prior year level
- Expansion of the store network through new store openings (33 stores opened in FY2026 (ending May 2026), 811 stores at fiscal year end)
- Steady growth in prescriptions filled and average prescription value through the expansion of dispensing pharmacies (28 pharmacies opened in FY2026 (ending May 2026), 490 stores at fiscal year end) and strengthened collaboration with nearby medical institutions
- Scale expansion through M&A (consolidation of San-F and Yaohan Holdings as subsidiaries)
- Strengthening of the food category (full-year sales of ¥214,837 million, up 109.7% year on year)
- Promotion of growth strategy, financial strategy, and sustainability management based on the medium-term management plan "Next STAGE 2030"
Risks
- Intensifying store openings and price competition from competitors crossing industry and business format boundaries
- Expansion of competitor scale through industry restructuring and M&A among major players
- Risk of reduced profitability due to revisions to dispensing fees and drug pricing
- Changes in legal regulations concerning pharmaceutical sales
- Slowdown in personal consumption and increasing thrift consciousness due to continued price increases
- Increase in selling, general and administrative expenses, including personnel costs (salaries and allowances of ¥42,395 million, up 9.2% year on year)
- Uncertainty about the outlook due to heightened geopolitical risk and the impact of US trade policy
- Impact on earnings from impairment losses (¥1,538 million in FY2026 (ending May 2026), versus ¥950 million in the prior fiscal year)
Last updated: August 21, 2025