M&A continues to drive revenue growth, but profit drivers vary by business

FY2027-Q1 consolidated revenue was ¥14,194 million and operating profit was ¥442 million, representing year-on-year increases of 5.7% and 1.8%, respectively. Revenue reached 25.1% of the full-year forecast of ¥56,500 million, while operating profit reached 24.6% of the ¥1,800 million forecast. On a simple comparison that does not take seasonality into account, both were broadly on plan for the first quarter.

The composition of revenue growth, however, was not uniform. Dispensing pharmacy revenue was ¥6,620.953 million and operating profit was ¥319.367 million. Revenue rose just 1.2% year on year, while operating profit declined 6.2%. Healthcare revenue was ¥2,328.500 million and operating profit was ¥15.092 million, with revenue up 7.5% but operating profit down 53.4%. By contrast, pharmaceutical wholesaling generated revenue of ¥5,178.707 million and operating profit of ¥107.461 million, increases of 11.2% and 34.5%, respectively. Real estate also recorded higher revenue and operating profit.

In the previous full fiscal year, revenue was ¥54,982 million and operating profit was ¥1,788 million. Dispensing pharmacy and real estate posted higher profit, while healthcare and pharmaceutical wholesaling posted lower profit. The company attributes revenue growth to expansion through M&A and business acquisitions, as well as improved operating efficiency, but has not disclosed the contribution of each M&A target to revenue and profit or full-year profit plans by segment. In FY2027-H1, it will be necessary to assess not only consolidated progress against the plan, but also whether the declines in dispensing pharmacy and healthcare have bottomed and whether the integration benefits in pharmaceutical wholesaling are continuing.