Genky DrugStores Reports Higher Operating Profit
Net income attributable to owners rose from the previous fiscal year.
Genky DrugStores Co.,Ltd. (TSE-9267), a drugstore retailer, reported operating profit of 10,985 million yen for the fiscal year ended 2026-06-20, an increase of 1,326 million yen from the previous fiscal year.
Cost of sales rose 15,818 million yen to 175,715 million yen as the store count increased through new openings and purchase prices climbed.
Selling, general and administrative expenses increased 2,707 million yen to 33,938 million yen, reflecting depreciation associated with new stores and higher personnel costs after wage increases.
Net income attributable to owners of the parent increased 808 million yen from the previous fiscal year to 7,875 million yen.
Ordinary profit reached 11,157 million yen, up 1,258 million yen, or 12.7%, from the previous fiscal year.
The retailer recorded sales of 197,228 million yen from R stores during the fiscal year.
Food sales amounted to 156,911 million yen during the fiscal year.
Total assets increased 18,271 million yen from the previous fiscal year-end to 145,598 million yen.
The increase in total assets mainly reflected rises of 1,644 million yen in cash and deposits, 1,456 million yen in merchandise, and 12,665 million yen in tangible fixed assets.
Cash and cash equivalents increased 1,644 million yen from the previous fiscal year-end to 7,866 million yen.
Operating activities generated 16,975 million yen in cash during the fiscal year, compared with a cash inflow of 12,597 million yen in the previous fiscal year.
Investing activities used 20,278 million yen in cash during the fiscal year, compared with an outflow of 15,618 million yen in the previous fiscal year.
Purchases of tangible fixed assets accounted for 20,101 million yen of cash used in investing activities.
Financing activities generated 4,947 million yen in cash during the fiscal year, compared with a cash inflow of 3,346 million yen in the previous fiscal year.
Long-term borrowings generated 14,642 million yen in financing cash inflow, and repayments of long-term borrowings used 9,370 million yen.
Genky plans to pursue low-cost operations by using its own logistics bases and building concentrated operating areas to expand regional market share.
Genky plans to build concentrated operating areas by opening fully standardized R stores with floor space of 300 tsubo.
Aggressive store openings by competitors, the expansion of online sales, and industry restructuring through mergers and acquisitions continued to create a difficult operating environment.