YAKUODO HOLDINGS Co.,Ltd.
7679・Prime Market・Retail Trade
Drugstore Business (YAKUODO HOLDINGS single segment)
A Tohoku-based drugstore chain. Expanding to 462 stores through ultra-rapid dominant-area store openings, including expansion into the Kanto area.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (cumulative first quarter) | ¥44,037 million | ¥39,408 million | ↑ |
| Operating profit (cumulative first quarter) | ¥1,429 million | ¥1,506 million | ↓ |
| Operating margin (cumulative first quarter) | 3.2% | 3.8% | ↓ |
| Ordinary profit (cumulative first quarter) | ¥1,424 million | ¥1,557 million | ↓ |
| Quarterly net profit attributable to owners of parent (cumulative first quarter) | ¥998 million | ¥1,114 million | ↓ |
| Net profit per share | ¥51.33 | ¥56.90 | ↓ |
| Number of stores at period-end | 462 stores | 456 stores | ↑ |
| Total assets | ¥104,882 million | ¥103,173 million | ↑ |
| Net assets | ¥40,661 million | ¥40,227 million | ↑ |
| Equity ratio | 38.8% | 39.0% | ↓ |
| Depreciation and amortization (cumulative first quarter) | ¥1,007 million | ¥778 million | ↑ |
| Full-year net sales forecast | ¥185,050 million | ¥163,808 million | ↑ |
| Full-year operating profit forecast | ¥5,520 million | ¥5,285 million | ↑ |
Business Details
A retailer of daily-life-related products including pharmaceuticals, cosmetics, daily necessities, and food. The company promotes small-trade-area dominant store openings centered on the six Tohoku prefectures, operating 462 stores (including 4 stores with attached dispensing pharmacies and 1 dedicated dispensing pharmacy) as of the end of the first quarter of FY2027 (ending February 2027). The Food Division accounts for approximately 48% of sales, and together with the Health, Beauty, and Home Divisions, the company functions as a comprehensive drugstore chain capturing the daily needs of local residents. The company is currently pursuing five priority strategies based on the medium-term management plan formulated in April 2025.
Recent Overview
Net sales increased +11.7% year-on-year, but operating profit declined -5.1% year-on-year due to rising costs.
In the first quarter of FY2027 (ending February 2027) (March to May 2026), net sales increased to ¥44,037 million (+11.7% year-on-year). However, selling, general and administrative expenses expanded to ¥8,184 million (+15.0% year-on-year), and interest expenses surged to ¥112 million (approximately triple the ¥37 million recorded in the same quarter of the prior year), resulting in declines at every profit stage: operating profit of ¥1,429 million (-5.1% year-on-year), ordinary profit of ¥1,424 million (-8.5% year-on-year), and quarterly net profit of ¥998 million (-10.5% year-on-year). During the quarter, the company opened 6 new stores in total—3 in the Tohoku area and 3 in the Kanto area—bringing the total number of stores at period-end to 462. Sales performance in the Kanto region expanded rapidly to ¥942 million (up +1,907.3% from ¥46 million in the same quarter of the prior year), indicating that the Kanto dominant-area strategy is now in full swing. Performance is broadly in line with plan, and there has been no change to the full-year forecast.
Key Products
Growth Drivers
- Expansion of sales scale through the promotion of ultra-rapid dominant-area store openings in the Kanto area (3 new stores opened in Tochigi and Ibaraki prefectures, etc. in the first quarter of FY2027 (ending February 2027), with Kanto sales performance up +1,907.3%)
- Strengthening of the Tohoku regional base through continued store openings (1 store each opened in Aomori, Miyagi, and Fukushima in the first quarter)
- Increase in the number of customer visits and items purchased through enhanced product lineup and pricing, centered on the Food Division (Food sales +9.9%, Home sales +17.2%)
- Standardization of store layout and strengthening of existing store competitiveness through the renovation of 15 stores
- Promotion of low-cost operations through reduction of in-store work and improved logistics efficiency
- Systematic promotion of five priority strategies based on the medium-term management plan formulated in April 2025
Risks
- Rising financial leverage and declining equity ratio (38.8%) due to increases in tangible fixed assets from aggressive store openings (+¥1,723 million compared to the end of the previous fiscal year) and persistently high long-term borrowings (¥26,614 million)
- Continued risk of margin pressure from a sharp increase in interest expenses (from ¥37 million in the same quarter of the prior year to ¥112 million in the current quarter, approximately tripling)
- Structural cost pressure as the increase in selling, general and administrative expenses (+15.0% year-on-year) outpaces the growth rate of net sales (+11.7%)
- Profit pressure from increased depreciation and amortization expenses (from ¥778 million in the same quarter of the prior year to ¥1,007 million in the current quarter, +29.4%)
- Impact on average customer spending and visit frequency from continued consumer thrift sentiment and sluggish growth in real income amid rising prices
- Intensifying competitive environment in the drugstore industry due to progress in major M&A and business capital alliances
- Risks of new store opening costs and initial losses associated with ultra-rapid dominant-area store openings in the Kanto area, as well as competition for management resources with the Tohoku base
Last updated: May 21, 2026