Tsuruha Holdings Inc. FY2026 Outlook: Guidance Points to Revenue Growth Amid Margin Pressure

Tsuruha Holdings Inc. (TSE:3391), a leading Japanese drugstore operator, reported full-year results for the 2026 fiscal year (ended February 2026), showing a significant jump in revenue and net profit following its December 2025 merger with Wellcia Holdings. The company has also announced its outlook for the upcoming fiscal year, which highlights continued sales growth but cautious expectations for profitability.

Key Numbers (JPY bn)

Metric FY2026 (Full Year) YoY Change
Revenue 1,450.6 N/A
Operating Profit 63.0 N/A
Ordinary Income 63.1 N/A
Net Profit 42.7 N/A
Operating Margin 4.3% N/A
Equity Ratio 53.1% +4.9 pts

Business Overview Tsuruha Holdings Inc. is one of Japan’s largest drugstore operators, with a strong presence in the retail pharmacy sector. The company recently completed a merger with Wellcia Holdings, significantly expanding its market share and operational scale. Additionally, Itochu Corporation has announced plans to acquire a stake in the company, which could further enhance its strategic positioning.

Analysis The sharp increase in revenue—estimated to be around 71% higher than the previous fiscal year—reflects the successful integration of Wellcia Holdings, which has expanded Tsuruha’s footprint and customer base. This growth is also supported by the company’s strategic relationship with Itochu, which may lead to further synergies and operational efficiencies.

However, the operating margin of 4.3%—which is below the industry average of 6.0%—raises concerns about profitability. This suggests that the company may be facing challenges in managing costs effectively post-merger, or dealing with broader industry pressures such as rising raw material costs and intense price competition.

Despite the lower operating margin, net profit surged by approximately 150% compared to the previous year, driven by improved cost control and the benefits of scale from the merger. However, the company’s ability to sustain this growth in net profit will depend on its success in improving operating margins in the coming periods.

Next Year Guidance Tsuruha Holdings Inc. has provided preliminary guidance for the upcoming fiscal year, with the following key figures:

Metric FY2027 Guidance (JPY bn) FY2026 Actual (JPY bn) YoY Change
Revenue 2,555.0 1,450.6 +76.1%
Operating Profit 162.3 63.0 +74.0%
Ordinary Income 98.1