Genky DrugStores Co.,Ltd.
9267・Prime Market・Retail Trade
Genky DrugStores Co., Ltd. (single segment: retail of pharmaceuticals, cosmetics, sundries, food, etc.)
A discount-format drugstore chain based in the Chubu and Hokuriku regions, positioned as "a nearby store where you can save on living expenses"
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (nine months ended Q3 cumulative) | ¥161,710 million | ¥147,383 million | ↑ |
| Operating profit (nine months ended Q3 cumulative) | ¥8,022 million | ¥6,839 million | ↑ |
| Ordinary profit (nine months ended Q3 cumulative) | ¥8,168 million | ¥7,046 million | ↑ |
| Quarterly net profit attributable to owners of parent (nine months ended Q3 cumulative) | ¥5,621 million | ¥4,873 million | ↑ |
| Gross profit (nine months ended Q3 cumulative) | ¥32,812 million | ¥29,774 million | ↑ |
| Selling, general and administrative expenses (nine months ended Q3 cumulative) | ¥24,790 million | ¥22,934 million | ↑ |
| Total assets (end of Q3) | ¥142,340 million | ¥127,326 million | ↑ |
| Net assets (end of Q3) | ¥59,090 million | ¥53,428 million | ↑ |
| Equity ratio (end of Q3) | 41.4% | 41.8% | ↓ |
| Total number of stores (end of Q3) | 510 stores (477 R Stores, 33 large-format stores) | 499 stores (466 R Stores, 33 large-format stores) | ↑ |
| Full-year net sales forecast | ¥221,200 million (up 10.2% year on year) | ¥200,786 million | ↑ |
| Full-year operating profit forecast | ¥11,050 million (up 14.4% year on year) | ¥9,658 million | ↑ |
| Depreciation and amortization (nine months ended Q3 cumulative) | ¥5,162 million | ¥4,554 million | ↑ |
Business Details
A single segment engaged in retail of pharmaceuticals, cosmetics, sundries, food, and other goods. The core format is the standardized store format "R Store (standardized drugstore format)", which thoroughly implements EDLP policy and low-cost management. The company has built dominant areas in Aichi, Gifu, Ishikawa, Shiga, and other prefectures, and is focusing on discounting daily necessities amid rising consumer thrift consciousness. As of the end of the third quarter of FY2026 (ending March 2026), the company operates a total of 510 stores, comprising 477 R Stores and 33 large-format stores.
Recent Overview
For the nine months ended Q3, net sales increased 9.7% and operating profit increased 17.3%, continuing a trend of higher sales and profit
For the nine-month cumulative period of FY2026 (ending March 2026) (June 21, 2025 to March 20, 2026), net sales were ¥161,710 million (up 9.7% year on year) and operating profit was ¥8,022 million (up 17.3% year on year). During the period, the company opened 31 new stores in total—19 in Aichi, 6 in Ishikawa, 3 in Gifu, and 3 in Shiga—while closing 1 large-format store and remodeling 5 R Stores. By product category, food was the largest category at ¥115,127 million. The full-year earnings forecast remains unchanged from the figures announced on January 22, 2026.
Key Products
Growth Drivers
- Continued aggressive dominant-area store openings for R Stores (31 new stores opened in the nine months ended Q3, bringing the period-end total to 510 stores)
- Increased demand for EDLP policy amid consumers' shift toward thrift consciousness and lower-priced goods
- Expanded food category sales (¥115,127 million for the nine months ended Q3), driving higher store visit frequency
- Improved profit margin through low-cost operations leveraging the company's own logistics facilities (operating margin improved to 4.96% from 4.64% in the prior-year period)
- Improved gross margin and competitive differentiation through development and enhancement of low-price PB products
Risks
- Intensifying store-opening competition and price competition from other companies in the same industry
- Accelerating industry consolidation through M&A and other means
- Profit pressure from rising procurement costs (cost of sales was ¥128,897 million, up 9.6% year on year)
- Increased personnel expenses due to wage increases, among other factors (SG&A expenses were ¥24,790 million, up 8.1% year on year)
- Difficulty in securing and training personnel, including registered pharmaceutical sales staff
- Financial burden from increased tangible fixed assets and borrowings accompanying accelerated store openings (long-term borrowings of ¥28,220 million, short-term borrowings of ¥1,228 million)
- Intensifying competition from the expansion of online sales
Last updated: September 10, 2025