Interim report
Page 1
Consolidated Financial Results for the Fiscal Year Ended May 31, 2025 [Japanese GAAP] July 11, 2025 Company name: COSMOS Pharmaceutical Corporation Stock exchange listing: Tokyo Stock Exchange Code number: 3349 URL: https://www.cosmospc.co.jp Representative: Hideaki Yokoyama, President Contact: Futoshi Shibata, Director and Corporate Planning Department Manager Phone: +81-92-433-0660 Scheduled date of general shareholders’ meeting: August 21, 2025 Scheduled date of commencing dividend payments: August 4, 2025 Scheduled date of filing securities report: August 28, 2025 Supplementary explanatory materials on annual financial results: Available Schedule of annual financial results briefing session: Scheduled (for the media, analysts and institutional investors) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Year Ended May 31, 2025 (June 1, 2024 - May 31, 2025) (1) Consolidated Operating Results (% indicates cha nges from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal y ear ended Million yen % Million yen % Million yen % Million yen % May 31, 2025 1,011,390 4.8 40,404 28.3 43,160 25.8 30,978 26.7 Ma y 31, 2024 964,989 16.6 31,501 4.6 34,299 3.7 24,454 2.8 (Note) Comprehensive income: Fiscal year ended May 31, 2025: ¥30,976 million [26.4%] Fiscal year ended May 31, 2024: ¥24,516 million [2.9%] Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal y ear ended Yen Yen % % % May 31, 2025 390.86 – 12.7 8.6 4.0 May 31, 2024 308.61 – 11.1 7.6 3.3 (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Basic earnings per share have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024. (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of May 31, 2025 524,755 257,463 49.1 3,248.45 As of May 31, 2024 476,546 231,442 48.6 2,920.13 (Reference) Equity: As of May 31, 2025: ¥257,463 million As of May 31, 2024: ¥231,442 million (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Net assets per share have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024. Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.
Page 2
(3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal y ear ended Million yen Million yen Million yen Million yen May 31, 2025 52,467 (55,448) 7,717 57,038 May 31, 2024 55,175 (57,329) 8,527 52,301 2. Dividends Annual dividends Total dividends (annual) Payout ratio (consolidated) Ratio of dividends to net assets (consolidated) 1st quarter- end 2nd quarter- end 3rd quarter- end Year- end Total Yen Yen Yen Yen Yen Million yen % % Fiscal year ended May 31, 2024 – 60.00 – 60.00 120.00 4,755 19.4 2.1 Fiscal year ended May 31, 2025 – 32.50 – 37.50 70.00 5,548 17.9 2.3 Fiscal year ending May 31, 2026 (Forecast) – 37.50 – 37.50 75.00 19.2 (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Dividends per share fo r the fiscal year ended May 31, 2024 are based on the amount bef ore such stock split. Assuming the stock split took place at the beginning of the fiscal year ended May 31, 2024, th e annual dividend for the fiscal year ended May 31, 2024 would be ¥60.00 (¥30.00 at 2nd quarter-end and ¥30.00 at year-end). 3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 31, 2026 (June 1, 2025 - May 31, 2026) Preface regarding consolidated financial results forecast (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen First half 525,000 3.8 20,420 0.4 21,7 80 0.0 14,650 1.5 184.84 Full year 1,057,000 4.5 40,500 0.2 43,200 0.1 31,000 0.1 391.13
Page 3
* Notes: (1) Significant changes in the scope of consolidation during the period: None Newly included: – (Company name: –) Excluded: – (Company name: –) (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): May 31, 2025: 80,001,600 shares May 31, 2024: 80,001,600 shares 2) Total number of treasury shares at the end of the period: May 31, 2025: 744,299 shares May 31, 2024: 743,968 shares 3) Average number of shares during the period: Fiscal year ended May 31, 2025: 79,257,381 shares Fiscal year ended May 31, 2024: 79,239,666 shares (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Number of shares have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024. (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended May 31, 2025 (June 1, 2024 - May 31, 2025) (1) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit Fiscal y ear ended Million yen % Million yen % Million yen % Million yen % May 31, 2025 1,011,390 4.8 40,393 28.3 43,156 25.9 30,976 26.7 May 31, 2024 964,988 16.6 31,481 4.6 34,286 3.7 24,446 2.8 Basic earnings per share Diluted earnings per share Fiscal y ear ended Yen Yen May 31, 2025 390.83 – May 31, 2024 308.51 – (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Basic earnings per share have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024. (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of May 31, 2025 524,365 256,946 49.0 3,241.93 As of May 31, 2024 476,150 230,926 48.5 2,913.61 (Reference) Equity: As of May 31, 2025: ¥256,946 mi llion As of May 31, 2024: ¥230,926 million (Note) The Company conducted a 2-for-1 stock split effective September 1, 2024. Net assets per share have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024.
Page 4
* These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes The statements about future projections contained in this document, including the outlook for financial results, are based on information currently available to the Company and certain assumptions that the Company considers reasonable, and actual financial results etc. may significantly dif fer from the projections due to various factors. As for the conditions assumed in the financial results forecast, please see “Future Outlook” on page 4 of the attachments.
Page 5
1 Table of Contents - Attachments 1. Overview of Operating Results, etc. .................................................................................................... 2 (1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2 (2) Overview of Financial Position for the Fiscal Year under Review ................................. ................ 3 (3) Overview of Cash Flows for the Fiscal Year under Review ............................................................ 3 (4) Future Outlook ............................... ................................................................................................. 4 (5) Basic Policy on Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year ................................................................................................................................ 4 2. Basic Policy on Selection of Accounting Standards ............................................................................ 5 3. Consolidated Financial Statements ...................................................................................................... 6 (1) Consolidated Balance Sheets .................. ........................................................................................ 6 (2) Consolidated Statements of Income and Comprehensive Income ...................................... ............ 8 Consolidated Statements of Income ................................................................................................ 8 Consolidated Statements of Comprehensive Income ...................................................................... 9 (3) Consolidated Statements of Changes in Equity . ........................................................................... 10 (4) Consolidated Statements of Cash Flows ........ ............................................................................... 12 (5) Notes to Consolidated Financial Statements ................................................................................... 13 ( Notes on going concern assumption ) ............................................................................................... 13 (Changes to accounting policies) ............................................................................................................13 (Segment information, etc.).....................................................................................................................13 (Per share information) ...........................................................................................................................13 (Significant subsequent events) ...............................................................................................................14
Page 6
2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review During the fiscal year ended May 31, 2025, the Japanese economy experienced instability due to domestic issues, overseas unrest, and other factors. Despite a sligh t slowdown in global inflation, prices of various g oods and services still have been rising in Japan. It was exactly because of these circumstances that the Group pursued even lower cost operations and strived to offer products of high quality at the lowest prices possible. As for the store opening policy, the Group opened new stores one after another, regardless of the temporary decline in profitability caused by our own competit ion. At the same time, the Group also expanded its store networks in new catchment areas. As a result, the number of newly opened stores stood at 31 in the Kanto region, 27 in the Chubu region, 15 in the Kansai region, 11 in the Chugoku region, 10 in the Shikoku region, a nd 26 in the Kyushu region, totaling 120. Furthermore, 1 store was closed due to scrap and build. As a result, the number of stores at the end of the fiscal year under review became 1,609 in total. As a result of the above measures, the Group’s consolidated operating results for the fiscal year under review were net sales of 1,011,390 million yen (4.8% incre ase year-on-year), operating profit of 40,404 milli on yen (28.3% increase year-on-year), ordinary profit of 4 3,160 million yen (25.8% increase year-on-year) and profit attributable to owners of parent of 30,978 million yen (26.7% increase year-on-year). Segment information is omitted because the Group is comprised of a single business segment. (Store opening and closure) (Unit: number of s tores) Region Number of stores at end of fiscal year ended May 31, 2024 Number of newly opened stores Number of closed stores Net increase Number of stores at end of fiscal year ended May 31, 202 5 Kanto 148 31 0 31 179 Chubu 151 27 0 27 178 Kansai 212 15 0 15 227 Chugoku 212 11 0 11 223 Shikoku 141 10 0 10 151 Kyushu 626 26 1 25 651 Total 1,490 120 1 119 1,609 (Sales by product) Product Fiscal year ended May 31, 2024 (from June 1, 2023 to May 31, 2024 ) Fiscal year ended May 31, 2025 (from June 1, 2024 to May 31, 2025 ) Year-on-year (%) Amount (Million yen) Composition (%) Amount (Million yen) Composition (%) Pharmaceutical 136,642 14.2 140,639 13.9 102.9 Cosmetics 89,709 9.3 93,107 9.2 103. 8 Sundry goods 148,822 15.4 150,996 14.9 101. 5 General foods 582,766 60.4 619,082 61.2 106.2 Others 7,047 0.7 7,565 0.8 107.4 Total 964,989 100.0 1,011,390 100.0 104.8
Page 7
3 (2) Overview of Financial Position for the Fiscal Year under Review (Assets) Current assets at the end of the fiscal year under review increased by 7.3% from the end of the previo us fiscal year to 165,622 million yen. This was mainly due to increases in cash and deposits of 4,736 million ye n and merchandise of 6,210 million yen. Non-current assets increased by 11.5% from the end of the previous fiscal to 359,133 million yen partly due to acquisition of property, plant and equipment including buildings and structures and land. As a result, total assets increased by 10.1% from the end of the previous fiscal year to 524,755 million yen. (Liabilities) Current liabilities at the end of the fiscal year under review increased by 3.5% from the end of the previous fiscal year to 220,680 million yen. This was mainly due to increases in income taxes payable of 2,487 million yen, accounts payable - other of 2,077 million yen, accrued expenses of 1,754 million yen, accrued consumption taxes of 1,565 million yen, and current portion of long-term borrowings of 1,100 million yen, as well as a decrease in accounts payable - trade of 2,423 million yen. Non-current liabilities increased by 46.2% from the end of the previous fiscal year to 46,612 million yen mainly due to an increase in long-term borrowings of 13,817 million yen. As a result, total liabilities increased by 9.1% from the end of the previous fiscal year to 267,292 million yen. (Net assets) Total net assets increased by 11.2% from the end of the previous fiscal year to 257,463 million yen ma inly due to an increase in retained earnings of 26,025 million yen. (3) Overview of Cash Flows for the Fiscal Year under Review The balance of cash and cash equivalents (hereinafter “cash”) at the end of the fiscal year under review increased by 4,736 million yen or 9.1% from the end of previous fiscal year to 57,038 million yen. The status of consolidated cash flows for the fisca l year under review and contributing factors were a s follows. (Cash Flows from Operating Activities) Net cash provided by operating activities amounted to 52,467 million yen (down 4.9% year-on-year). This was mainly due to positive factors such as pro fit before income taxes of 42,372 million yen and depreciation of 22,229 million yen, and negative factors such as an increase in inventories of 6,182 million yen, income taxes paid of 9,571 million yen, and a decrease in trade payables of 2,423 million yen. (Cash Flows from Investing Activities) Net cash used in investing activities amounted to 55,448 million yen (down 3.3% year-on-year). This was mainly due to purchase of property, plant and equipment of 53,326 million yen and payments of leasehold and guarantee deposits of 1,236 million yen. (Cash Flows from Financing Activities) Net cash provided by financing activities amounted to 7,717 million yen (down 9.5% year-on-year). This was mainly due to proceeds from long-term borr owings of 20,000 million yen, repayments of long- term borrowings of 5,082 million yen, dividends pai d of 4,959 million yen and repayments of finance le ase liabilities of 2,238 million yen.
Page 8
4 (Reference) Changes in cash flow-related indicators Fiscal year ended May 31, 2021 Fiscal year ended May 31, 2022 Fiscal year ended May 31, 2023 Fiscal year ended May 31, 2024 Fiscal year ended May 31, 2025 Equity ratio 50.0 52.5 50.1 48.6 49.1 Equity ratio based on market value 176.7 133.1 124.7 105.5 133.4 Interest-bearing liabilities to cash flow ratio 0.4 0.3 0.3 0.6 1.0 Interest coverage ratio 460.9 610.8 1,061.5 543.2 202.7 Equity ratio: equity/total assets Equity ratio based on market value: total market capitalization/total assets Interest-bearing liabilities to cash flow ratio: interest-bearing liabilities/cash flows Interest coverage ratio: cash flows/interest payments (Note 1) Each of the above indicators is calculated based on consolidated financial figures. (Note 2) Total market capitalization is calculated based on total number of issued shares excluding tr easury shares. (Note 3) For the cash flows, the cash flows from operating activities are used. (Note 4) Interest-bearing liabilities include all liabilities recorded on the Consolidated Balance Sheets for which interest is paid. (4) Future Outlook As for future prospects during the fiscal year ending May 31, 2026, inflation is expected to continue to drive up the prices of various goods, and consumers are expe cted to become even more budget-minded. It is exact ly because of these circumstances that the Company is determined to continue to strengthen efforts to mak e sales of “products of high quality and available at the l owest prices possible.” With regard to new store openings in the fiscal year ending May 31, 2026, the Company intends to continue its approach of strategic dominance, opening new stores without concerning itself over stores cannibalizing each other’s sales. The Company plans to deploy stores i n the new catchment-areas of Kanto, Chubu and Kansa i regions while continuing to open new stores in the Kyushu, Chugoku and Shikoku regions. With the above measures, the Company’s forecast for its consolidated financial results for the fiscal year ending May 31, 2026, are net sales of 1,057.0 billion yen, operating profit of 40.5 billion yen, ordinary profit of 43.2 billion yen and profit attributable to owners of parent of 31.0 billion yen. (5) Basic Policy on Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year The Company’s policy on distribution of profits is to return profits through stable and sustained divi dend to shareholders based on progressive dividends, as well as secure sufficient internal reserves for the reinforcement of its management structure and utilize the reserves for appropriate reinvestments. In accordance with the above policy, the Company plans to pay an interim dividend of 32.5 yen and a year- end dividend of 37.5 yen per share for the fiscal y ear ended May 31, 2025. Accordingly, the annual dividend is planned to be 70 yen per share as an ordinary dividend, an increase of 10 yen from a year earlier on a post-2-for- 1 stock split basis. The Company also plans to make an interim dividend of 37.5 yen and a year-end dividend of 37.5 yen per share for the fiscal year ending May 31, 2026. Accordingly, the annual dividend is planned to be 75 yen per share as an ordinary dividend, an increase of 5 yen from a year earlier.
Page 9
5 2. Basic Policy on Selection of Accounting Standards The Group plans to continue to prepare its consolidated financial statements under the Japanese GAAP for the time being as the Group has been currently developing its business in Japan. With regard to the adoption of the International Financial Reporting Standards (IFRS), the Group will continue to make its deliberation in consideration of factor s such as future business development and domestic and international trends.
Page 10
6 3. Consolidated Financial Statements (1) Consolidated Balance Sheets (Million yen) As of May 31, 2024 As of May 31, 2025 Assets Current assets Cash and deposits 52,301 57,038 Accounts receivable - trade 637 761 Merchandise 85,821 92,031 Supplies 352 292 Prepaid expenses 2,568 2,857 Accounts receivable - other 11,562 11,479 Other 1,089 1,161 Total current assets 154,333 165,622 Non-current assets Property, plant and equipment Buildings and structures 315,108 353,050 Accumulated depreciation (88,594) (102,100) Buildings and structures, net 226,514 250,949 Machinery, equipment and vehicles 5,498 6,140 Accumulated depreciation (3,240) (3,952) Machinery, equipment and vehicles, net 2,258 2,188 Tools, furniture and fixtures 41,330 45,943 Accumulated depreciation (29,991) (33,277) Tools, furniture and fixtures, net 11,339 12,666 Land 42,111 53,238 Leased assets 9,943 11,363 Accumulated depreciation (4,497) (5,030) Leased assets, net 5,445 6,333 Construction in progress 8,129 5,749 Total property, plant and equipment 295,798 331,125 Intangible assets Other 497 446 Total intangible assets 497 446 Investments and other assets Investment securities 4 4 Deferred tax assets 2,461 2,913 Construction assistance fund receivables 4,382 4,460 Leasehold and guarantee deposits 16,172 17,038 Other 2,897 3,144 Total investments and other assets 25,917 27,561 Total non-current assets 322,213 359,133 Total assets 476,546 524,755
Page 11
7 (Million yen) As of May 31, 2024 As of May 31, 2025 Liabilities Current liabilities Accounts payable - trade 179,549 177,125 Current portion of long-term borrowings 4,581 5,682 Lease liabilities 1,931 2,256 Accounts payable - other 9,822 11,899 Accrued expenses 8,057 9,812 Income taxes payable 5,572 8,060 Accrued consumption taxes 2,026 3,591 Contract liabilities 522 380 Provision for loss on store closings 112 52 Other 1,052 1,817 Total current liabilities 213,229 220,680 Non-current liabilities Long-term borrowings 23,385 37,202 Lease liabilities 4,166 4,817 Retirement benefit liability 1,751 1,953 Asset retirement obligations 2,141 2,206 Other 429 432 Total non-current liabilities 31,874 46,612 Total liabilities 245,104 267,292 Net assets Shareholders’ equity Share capital 4,178 4,178 Capital surplus 5,101 5,101 Retained earnings 222,284 248,309 Treasury shares (225) (227) Total shareholders’ equity 231,339 257,362 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1 1 Remeasurements of defined benefit plans 101 99 Total accumulated other comprehensive income 102 101 Total net assets 231,442 257,463 Total liabilities and net assets 476,546 524,755
Page 12
8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Million yen) For the fiscal year ended May 31, 2024 For the fiscal year ended May 31, 2025 Net sales 964,989 1,011,390 Cost of sales 776,683 798,109 Gross profit 188,305 213,281 Selling, general and administrative expenses 156,804 172,877 Operating profit 31,501 40,404 Non-operating income Interest income 44 48 Commission income 1,407 1,441 Rental income from real estate 1,183 1,189 Gain on receipt of donated non-current assets 500 503 Other 501 561 Total non-operating income 3,637 3,744 Non-operating expenses Interest expenses 99 254 Rental costs on real estate 456 464 Other 282 270 Total non-operating expenses 839 988 Ordinary profit 34,299 43,160 Extraordinary income Gain on sale of non-current assets 75 – Insurance claim income – 8 Compensation income 552 7 Total extraordinary income 628 15 Extraordinary losses Loss on retirement of non-current assets 475 508 Impairment losses 535 – Loss on disaster 19 229 Loss on store closings 108 33 Provision for loss on store closings 69 31 Total extraordinary losses 1,208 803 Profit before income taxes 33,719 42,372 Income taxes - current 9,484 11,845 Income taxes - deferred (219) (451) Total income taxes 9,265 11,393 Profit 24,454 30,978 Profit attributable to owners of parent 24,454 30,978
Page 13
9 Consolidated Statements of Comprehensive Income (Million yen) For the fiscal year ended May 31, 2024 For the fiscal year ended May 31, 2025 Profit 24,454 30,978 Other comprehensive income Valuation difference on available-for-sale securities (0) 0 Remeasurements of defined benefit plans, net of tax 62 (1) Total other comprehensive income 62 (1) Comprehensive income 24,516 30,976 Comprehensive income attributable to Comprehensive income attributable to owners of parent 24,516 30,976
Page 14
10 (3) Consolidated Statements of Changes in Equity Fiscal year ended May 31, 2024 (from June 1, 2023 to May 31, 2024) (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 4,178 4,610 202,485 (242) 211,031 Changes during period Dividends of surplus (4,654) (4,654) Profit attributable to owners of parent 24,454 24,454 Purchase of treasury shares (0) (0) Restricted stock compensation 490 18 509 Net changes in items other than shareholders’ equity Total changes during period – 490 19,799 17 20,308 Balance at end of period 4,178 5,101 222,284 (225) 231,339 Accumulated other comprehensive income Total net assets Valuation difference on available-for- sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 1 39 40 211,072 Changes during period Dividends of surplus (4,654) Profit attributable to owners of parent 24,454 Purchase of treasury shares (0) Restricted stock compensation 509 Net changes in items other than shareholders’ equity (0) 62 62 62 Total changes during period (0) 62 62 20,370 Balance at end of period 1 101 102 231,442
Page 15
11 Fiscal year ended May 31, 2025 (from June 1, 2024 to May 31, 2025) (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 4,178 5,101 222,284 (225) 231,339 Changes during period Dividends of surplus (4,953) (4,953) Profit attributable to owners of parent 30,978 30,978 Purchase of treasury shares (2) (2) Restricted stock compensation – Net changes in items other than shareholders’ equity Total changes during period – – 26,025 (2) 26,022 Balance at end of period 4,178 5,101 248,309 (227) 257,362 Accumulated other comprehensive income Total net assets Valuation difference on available-for- sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 1 101 102 231,442 Changes during period Dividends of surplus (4,953) Profit attributable to owners of parent 30,978 Purchase of treasury shares (2) Restricted stock compensation – Net changes in items other than shareholders’ equity 0 (1) (1) (1) Total changes during period 0 (1) (1) 26,021 Balance at end of period 1 99 101 257,463
Page 16
12 (4) Consolidated Statements of Cash Flows (Million yen) For the fiscal year ended May 31, 2024 For the fiscal year ended May 31, 2025 Cash flows from operating activities Profit before income taxes 33,719 42,372 Depreciation 19,924 22,229 Increase (decrease) in retirement benefit liability 204 199 Impairment losses 535 – Increase (decrease) in provision for loss on store closings 69 31 Interest and dividend income (44) (48) Interest expenses 99 254 Loss on disaster 19 229 Loss (gain) on sale of non-current assets (73) – Insurance claim income – (8) Compensation income (552) (7) Loss on retirement of non-current assets 475 508 Loss on store closings 108 33 Decrease (increase) in trade receivables (185) (123) Decrease (increase) in inventories (8,704) (6,182) Decrease (increase) in accounts receivable - other (1,644) (69) Increase (decrease) in trade payables 17,697 (2,423) Other, net 2,229 5,264 Subtotal 63,878 62,260 Interest and dividends received 0 3 Interest paid (101) (258) Income taxes paid (8,993) (9,571) Payments associated with disaster loss (13) (165) Proceeds from insurance income 1 50 Proceeds from compensation 404 149 Net cash provided by (used in) operating activities 55,175 52,467 Cash flows from investing activities Purchase of property, plant and equipment (55,810) (53,326) Proceeds from sale of property, plant and equipment 718 – Payments of construction assistance fund receivables (523) (558) Proceeds from collection of construction assistance fund receivables 431 417 Payments of leasehold and guarantee deposits (1,322) (1,236) Proceeds from refund of leasehold and guarantee deposits 295 403 Other, net (1,116) (1,148) Net cash provided by (used in) investing activities (57,329) (55,448) Cash flows from financing activities Proceeds from long-term borrowings 18,400 20,000 Repayments of long-term borrowings (3,193) (5,082) Purchase of treasury shares (0) (2) Repayments of finance lease liabilities (2,020) (2,238) Dividends paid (4,659) (4,959) Net cash provided by (used in) financing activities 8,527 7,717 Effect of exchange rate change on cash and cash equivalents – – Net increase (decrease) in cash and cash equivalents 6,373 4,736 Cash and cash equivalents at beginning of period 45,928 52,301 Cash and cash equivalents at end of period 52,301 57,038
Page 17
13 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Changes to accounting policies) (Application of the Accounting Standard for Current Income Taxes, etc.) The Company has been applying the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the “2 022 Revised Accounting Standard”) since the beginning of the fiscal year ended May 31, 2025. The revisions related to the categories for recording income taxes (taxation on other comprehensive income) follow the transitional treatments prescribed in the proviso of Paragraph 20-3 of the 2022 Revised Accounting Standard and the proviso of Paragraph 65-2 (2) of t he Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the “2022 Revised Guidance”). These changes have no impact on the consolidated financial statements. In addition, since the beginning of the fiscal year ended May 31, 2025, the 2022 Revised Guidance has been applied to the amendments related to the revision of accounting treatment in consolidated financial statements of cases where tax deferral is applied to gains or losses arising from the sale of subsidiary shares, etc. between consolidated companies. This change has been applie d retrospectively, and the consolidated financial statements for the previous fiscal year have been a djusted accordingly. This change has no impact on t he consolidated financial statements for the previous fiscal year. (Segment information, etc.) (Segment information) This information is omitted since the Group operate s in a single segment of retail sale of pharmaceuti cals and cosmetics, etc. (Per share information) For the fiscal year ended May 31, 2024 For the fiscal year ended May 31, 2025 Net assets per share 2,920.13 yen Net assets per sh are 3,248.45 yen Basic earnings per share 308.61 yen Basic earnings per share 390.86 yen (Notes) 1. Diluted earnings per share is not stated because there are no dilutive shares. 2. The Company conducted a 2-for-1 stock split effective September 1, 2024. Net assets per share and basic earnings per share have been calculated on the assumption that such stock split took place at the beginning of the fiscal year ended May 31, 2024. 3. The basis for calculating basic earnings per share is as follows. For the fiscal year ended May 31, 2024 For the fiscal year ended May 31, 2025 Basic earnings per share Profit attributable to owners of parent (million yen) 24,454 30,978 Amount not attributable to common shareholders (million yen) – – Profit attributable to owners of parent related to common shares (million yen) 24,454 30,978 Average number of common shares during the period 7 9,239,666 79,257,381 4. The basis for calculating net assets per share is as follows. As of May 31, 2024 As of May 31, 2025 Total net assets (million yen) 231,442 257,463 Deductions from total net assets (million yen) – – Net assets related to common shares at end of period (million yen) 231,442 257,463 Number of common shares used in the calculation of net assets per share at end of period 79,257,632 79,257,301
Page 18
14 (Significant subsequent events) Not applicable.