Medical Ikkou Group Co.,Ltd.
3353・Standard Market・Retail Trade
Business
Medical Ikko Group Co., Ltd. is a diversified healthcare group centered on its Dispensing Pharmacy Business, founded in 1985, and also operating a Healthcare Business (nursing care), Pharmaceutical Wholesale Business, and Real Estate Business. Headquartered in Tsu City, Mie Prefecture, the company is listed on the Standard Market of the Tokyo Stock Exchange. As of the end of FY2025 (ending February 2025), it operates locations across 1 metropolis, 1 prefecture (Hokkaido), 2 urban prefectures, and 22 prefectures, running 100 dispensing pharmacies, 43 residential care facilities (1,435 rooms), and numerous home-based nursing care service establishments. The group comprises 13 subsidiaries and 1 other affiliated company, and is actively pursuing M&A to expand its medical and nursing care services both geographically and in business scope.
Business Model
In the core Dispensing Pharmacy Business, revenue is generated from drug fees and technical fees derived from prescription dispensing, with the company aiming to raise unit prices by expanding certification as a community-based pharmacy or specialized medical institution-linked pharmacy and by enhancing home healthcare support. The Healthcare Business earns revenue from occupancy and usage fees at nursing care facilities, while the Pharmaceutical Wholesale Business generates revenue from margins on pharmaceutical sales to medical institutions. The Real Estate Business supplements stable earnings through rental income from owned properties. Each business uses scale expansion through M&A as a growth engine, and also leverages internal transactions between dispensing pharmacies and pharmaceutical wholesale operations within the group.
Company Strengths
Over the one-year period from FY2024 (ended March 2024) to FY2025 (ended February 2025), the company carried out M&A across all three core businesses: Dispensing Pharmacy Business (Keiju Pharmaceutical, 2 Kaiei Pharmacy stores), Healthcare Business (a nursing care facility in Tokyo), and Pharmaceutical Wholesale Business (Sato Yakuhin Hanbai, Wakamatsu Yakuhin, Keiyo Sawai Yakuhin). Net sales grew 44% over three years, from ¥33,596 million in FY2022 (ended February 2022) to ¥48,393 million in FY2025 (ended February 2025).
As of the end of FY2025 (ended February 2025), the company operated 100 stores across 1 metropolis, 1 prefecture (Hokkaido), 2 urban prefectures (Osaka/Kyoto), and 22 other prefectures. Mie Prefecture forms the core with 46 stores, followed by Kyoto Prefecture with 16 stores and Aichi Prefecture with 11 stores, among others. Annual prescriptions filled totaled 1,855,268. The company is working to raise unit prices for Dispensing Pharmacy Service (Technical Fees, etc.) by expanding certifications as a community-based pharmacy and specialized medical institution collaboration pharmacy, and by strengthening its Home Healthcare Support Service.
The Real Estate Business boasts extremely high profitability, with net sales of ¥203 million and operating profit of ¥137 million in FY2025 (ended February 2025), representing an operating margin of 56.9%. In addition to steady accumulation of Real Estate Rental Income from properties held by the group, gains on sales of investment securities (¥117 million in FY2025 (ended February 2025) and ¥228 million in FY2026 (ending February 2026)) also contribute as extraordinary income.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive periods, from ¥33,596 million in FY2022 to ¥54,983 million in FY2026, with M&A-led expansion continuing. The full-year forecast for FY2027 (ending February 2027) stands at ¥56,500 million (up 2.8% year on year), indicating a slowing pace of revenue growth. Operating profit has remained in the range of ¥1,500–1,800 million since FY2024, with the operating margin stable at a low level in the 3% range. In Q1 of FY2027 (ending February 2027), revenue was ¥14,194 million (up 5.7% year on year) and operating profit was ¥442 million (up 1.8% year on year), reflecting only modest growth in the core business. On the other hand, net income attributable to owners of the parent rose sharply to ¥637 million (up 45.5% year on year), boosted by extraordinary gains including a ¥186 million gain on sale of investment securities. As an external factor, the structural pressure on earnings from wage increases and rising cost ratios continues to weigh on profitability.
Growth Strategy
Expanding three businesses through M&A, aiming for net sales of ¥60 billion and operating profit of ¥2.5 billion
Following expansion into Saga, Kochi, Aichi, Saitama, Kagawa, Chiba, and other regions, the company acquired the generic drug wholesale business from Nissin Yakuhin Co., Ltd. in the first quarter of FY2027 (ending March 2027). Operating bases have expanded to 1 metropolis, 1 prefecture (Hokkaido), 2 urban prefectures, and 24 prefectures, with the aim of reducing procurement costs through economies of scale.
Under a 97-store network, the company is promoting increases in prescription unit prices (technical fees, etc.) and expanding certification of community-linked pharmacies and specialized medical institution-linked pharmacies to improve unit prices. The number of prescriptions filled at existing stores decreased slightly year on year, making the maintenance of revenue through unit price improvement a key challenge.
The company is working to improve occupancy and utilization rates across 115 facilities/offices (1,904 residential units). In the first quarter of FY2027 (ending March 2027), occupancy improved slightly year on year, but operating profit remained at a low level of ¥15 million (down 53.4% year on year) due to increased labor costs. While using wage-increase subsidies to support earnings, the company aims to move from an upfront investment phase to profitability.
Last updated: July 17, 2026