SATUDORA HOLDINGS CO., LTD.
3544・Standard Market・Retail Trade
Business
Satudora Holdings is a holding company that operates the Retail Business (sales of ¥98,439 million), centered on "Sapporo Drug Store," a drugstore and dispensing pharmacy chain based primarily in Hokkaido, alongside the Regional Marketing Services and Payment Services Business (sales of ¥1,954 million), centered on "EZOCA (Hokkaido Common Point Card)." As of the end of FY2025 (ending May 2025), the company operated 199 stores, and is pursuing business expansion from retail focused on "selling goods" toward a lifestyle services domain offering "goods × services," through measures such as expanding Inbound Format Stores and pharmacy-attached drugstores, and strengthening line robbing including fresh food. Its main customers are general consumers residing in Hokkaido and inbound foreign tourists.
Business Model
In the Retail Business, the main revenue sources are product sales and dispensing fee income from operating drugstore and dispensing pharmacy stores, with the ESLP pricing strategy and digital marketing through the Satudora Official App (cumulative 1.3 million downloads) used to increase visit frequency. In the Marketing Business, the platform of over 2.3 million EZOCA members and over 1,100 affiliated stores is leveraged to generate diverse revenue streams including merchant fees, payment service revenue, and municipal partnerships. The structure creates group synergies through mutual customer referrals and data integration between the two businesses.
Company Strengths
EZOCA (Hokkaido Common Point Card) has over 2.3 million members and 300 partner companies (over 1,100 stores), and offers a variety of derivative cards, including municipal reward-type and sports team reward-type cards. With the release of EZO Pay, the company is also advancing the in-house completion of its payment platform, building a unique regional economic zone in Hokkaido.
As of the end of May 2025, the company operated 22 stores with attached dispensing pharmacies (up 5 stores year on year), 10 Inbound Format Stores, and 46 stores handling fresh food. Dispensing pharmacy sales reached ¥4,497 million and food sales reached ¥37,527 million (up 6.7% year on year), with multiple categories growing simultaneously, driving diversification of revenue.
The Satudora Official App, released in January 2022, has achieved cumulative downloads of 1.3 million, contributing to increased store visit frequency and expanded customer touchpoints. Comprehensive partnership agreements with municipalities, companies, and other organizations have reached over 40, and the company has continued to build up region-focused intangible assets, including certification as a "2025 Certified Health & Productivity Management Outstanding Organization (White 500)".
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, from ¥82,905 million in FY2022 (ending May 2022) to ¥100,571 million in FY2026 (ending May 2026), but growth decelerated sharply from 4.9% (FY2025, ending May 2025) to 0.4% (FY2026, ending May 2026). Operating profit, after bottoming at ¥299 million in FY2023 (ending May 2023), recovered to ¥1,675 million in FY2025 (ending May 2025), but fell back to ¥1,458 million in FY2026 (ending May 2026). Cost increases such as wage base-up and higher electricity rates pushed up SG&A expenses, while intensifying consumer thrift amid price inflation reduced customer traffic and items purchased per visit at Drugstore Format Stores. The expansion of impairment losses to ¥453 million (versus ¥339 million in the previous fiscal year) also significantly dragged down the bottom line, with net income falling 43.4% to ¥434 million (versus ¥767 million in the previous fiscal year).
Growth Strategy
Under the theme of "building a system to earn locally," the company is advancing four initiatives: gross margin improvement, DX, capital efficiency, and shareholder returns
Promoting appropriate pricing through pricing strategy to curb unnecessary discounting, boosting store visit motivation through price reductions on 80 items, and driving differentiation and gross margin improvement through the launch of a new private brand (with the concepts of "comfort" and "Hokkaido-ness"). Gross profit for FY2026 (ending March 2026) increased to ¥26,110 million (vs. ¥25,592 million in the previous period), and the gross margin improved to 25.99% (vs. 25.55% in the previous period).
Implementing business process reform through a dedicated department and promoting cross-organizational DX, as well as company-wide adoption of an integrated collaboration tool to consolidate internal communication and procedures. However, SG&A expenses for FY2026 (ending March 2026) increased to ¥24,651 million (vs. ¥23,917 million in the previous period), and cost increases such as wage base-ups and rising electricity rates have not been fully absorbed.
Closed 4 unprofitable stores (reducing Drugstore Format Stores from 180 to 177) to promote selection and concentration. Strengthened e-commerce through the renewal of the Satudora Official Online Store and built a mutual customer referral model with physical stores, and improved asset efficiency through real estate sales in the asset business (sale proceeds of ¥1,034 million). The equity ratio improved from 21.2% to 22.4%.
The company had set a policy of a minimum annual dividend of ¥10 per share, aiming for a consolidated dividend payout ratio of 30% in the future; however, following the MBO, the year-end dividend for FY2026 (ending March 2026) was revised to no dividend. The shareholder benefit program is also scheduled to be abolished. With the delisting expected following the successful tender offer, this initiative is effectively expected to end.
Last updated: July 17, 2026