Sugi Holdings raised its full-year sales forecast and cut every profit line on 8 October, in a revision to guidance for the year ending February 2027 first set on 9 April. Sales are now expected at ¥1.118tn, against ¥1.092tn before. Operating profit is guided to ¥51.0bn, down from ¥54.0bn.
| Measure | Previous | Revised | Change |
|---|---|---|---|
| Sales | ¥1.092tn | ¥1.118tn | +2.4% |
| EBITDA | ¥77.4bn | ¥72.5bn | -6.3% |
| Operating profit | ¥54.0bn | ¥51.0bn | -5.6% |
| Ordinary profit | ¥55.0bn | ¥51.4bn | -6.5% |
| Net profit attributable to owners of parent | ¥32.8bn | ¥27.4bn | -16.5% |
Acquired sales, weaker stores
The drugstore operator said the sales increase comes from including the results of Seki Yakuhin, which became a consolidated subsidiary in September 2026, for September to December. Sugi raised its stake in the former equity-method affiliate from 49.0% to 51.0% on 1 September, paying cash. Acquisition cost was about ¥24.6bn, and the interim report says goodwill and acquisition-related costs are not yet fixed.
On profit, Sugi said poor summer weather left merchandise sales at existing stores below assumptions, mainly in seasonal goods. It has reset its second-half merchandise sales and gross margin assumptions. Profit still falls short of the earlier forecast even with Seki's contribution included.
What still holds
The revised sales, operating profit and ordinary profit forecasts remain above last year's results, and the dividend forecast is unchanged. The net profit guide of ¥27.4bn compares with ¥44.98bn a year earlier. Earnings per share are guided at ¥73.62 after the 1 September two-for-one stock split, or ¥147.24 before it.
First-half results, which end before Seki was consolidated, showed sales of ¥540.7bn, up 8.1%, and operating profit of ¥24.7bn, up 4.4%. Net profit fell 54.6% to ¥13.0bn, which Sugi attributes to a deferred tax asset booked in the prior year after the merger of the former I&H.