Interim report
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Consolidated Financial Results for the Three Months Ended August 31, 2025 [Japanese GAAP] October 14, 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 commencing dividend payments: – Supplementary explanatory materials on financial results: None Schedule of financial results briefing session: Not scheduled (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Three Months Ended August 31, 2025 (June 1, 2025 - August 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 Three months ended Million yen % Million yen % Million yen % Million yen % August 31, 2025 272,394 4.0 11,645 0.6 12,188 (0.9) 8,171 0.3 August 31 , 2024 261,841 8.4 11,580 28.8 12,293 26.7 8,143 25.1 (Note) Comprehensive income: Three months ended Aug ust 31, 2025: ¥8,167 million [0.3%] Three months ended August 31, 2024: ¥8,140 milli on [25.1%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen August 31, 2025 103.10 – August 31 , 2024 102.74 – (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, 2025. (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of August 31, 2025 524,305 262,658 50.1 As of May 31, 2025 524,755 257,463 49.1 (Reference) Equity: As of August 31, 2025: ¥262,658 million As of May 31, 2025: ¥257,463 million 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.
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2. Dividends Annual dividends 1st quarter- end 2nd quarter- end 3rd quarter- end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended May 31, 202 5 – 32.50 – 37.50 70.00 Fiscal year ending May 31, 202 6 – Fiscal year ending May 31, 2026 (Forecast) 37.50 – 37.50 75.00 (Note) Revision to the forecast for dividends announced most recently: None 3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 31, 2026 (June 1, 2025 - May 31, 2026) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share First half Million yen 525 ,000 % 3.8 Million yen 20,420 % 0. 4 Million yen 21,780 % 0. 0 Million yen 14,650 % 1.5 Yen 184.84 Full year 1,0 57,000 4.5 40 ,500 0. 2 43 ,200 0. 1 31 ,000 0. 1 391 .1 3 (Note) Revision to the financial results forecast announced most recently: None * Notes: (1) Significant changes in the scope of consolidation during the period: None Newly included: – (Company name: –) Excluded: – (Company name: –) (2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): August 31, 2025: 80,001,600 shares May 31, 2025: 80,001,600 shares 2) Total number of treasury shares at the end of the period: August 31, 2025: 744,335 shares May 31, 2025: 744,299 shares 3) Average number of shares during the period: Three months ended August 31, 2025: 79,257,274 shar es Three months ended August 31, 2024: 79,257,540 shar es (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, 2025. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
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* Explanation of the proper use of financial results forecast and other notes The statements about future projections contained i n this document, including the outlook for financia l results, are based on information currently available to the Com pany and certain assumptions that the Company consi ders reasonable, and actual financial results etc. may significantly differ from the projections due to various factors. As for matters concerning the financial results forecast, please see “(3) Explanation of Consolidated Financi al Results Forecast and Other Forward-looking Information” on page 2 of the attachments.
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1 Table of Contents - Attachments 1. Qualitative Information on Quarterly Financial Results ....................................................................... 2 (1) Explanation of Operating Results...................................................................................................... 2 (2) Explanation of Financial Position ..................................................................................................... 2 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information . 2 2. Quarterly Consolidated Financial Statements ....................................................................................... 3 (1) Quarterly Consolidated Balance Sheets ............................................................................................ 3 (2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................... 5 Quarterly Consolidated Statements of Income .................................................................................... 5 Three Months Ended August 31, 2024 and Three Months Ended August 31, 2025 .......................... 5 Quarterly Consolidated Statements of Comprehensive Income .......................................................... 6 Three Months Ended August 31, 2024 and Three Months Ended August 31, 2025 .......................... 6 (3) Notes to Quarterly Consolidated Financial Statements ..................................................................... 7 (Notes on going concern assumption) ............................................................................................... 7 (Notes in case of significant changes in shareholders’ equity) .......................................................... 7 (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements) ........................................................................................................................................ 7 (Notes on segment information, etc.) ................................................................................................. 7 (Notes on statements of cash flows) .................................................................................................. 7 3. Supplementary Information ................................................................................................................... 8
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2 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the three months ended August 31, 2025, the Japanese economy remained sluggish as consumer sentiment weakened due to the continued rise in pri ces of various good and services, while wage growth failed to keep pace. 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 competition. 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 2 in the Kanto regi on, 4 in the Chubu region, 2 in the Kansai region, 1 in the Chugoku region, 2 in the Shikoku region, and 1 in t he Kyushu region, totaling 12. Furthermore, 1 store was closed due to the expiration of its lease agreement. As a result, the number of stores at the end of the three months ended August 31, 2025 became 1,620 in total. As a result of the above measures, the Group’s financial results for the three months ended August 31, 2025 were net sales of 272,394 million yen (4.0% increase year-on-year), operating profit of 11,645 million yen (0.6% increase year-on-year), ordinary profit of 12,188 m illion yen (0.9% decrease year-on-year), and profit attributable to owners of parent of 8,171 million yen (0.3% increase year-on-year). Segment information is omitted because the Group is comprised of a single business segment. (2) Explanation of Financial Position Total assets as of August 31, 2025 amounted to 524,305 million yen, a decrease of 449 million yen from the end of the previous fiscal year. This was mainly due to decreases of 7,499 million yen in cash and deposits and 3,153 million yen in merchandise and increases of 4,246 million yen in other under current assets (including accounts receivable – other) and 5,716 million yen in proper ty, plant and equipment. Total liabilities amounted to 261,647 million yen, a decrease of 5,644 million yen from the end of the previous fiscal year. This was mainly due to decrea ses of 3,662 million yen in income taxes payable, 2 ,609 million yen in other under current liabilities (including accounts payable – other), and 1,137 million yen in long- term borrowings, and an increase of 1,847 million yen in accounts payable – trade. Total net assets amounted to 262,658 million yen, a n increase of 5,194 million yen from the end of the previous fiscal year. This was mainly due to an increase in retained earnings. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information Regarding the consolidated financial results forecast for the fiscal year ending May 31, 2026, there is no change from the consolidated financial results forecast released on July 11, 2025.
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3 2. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets (Million yen) As of May 31, 2025 As of August 31, 2025 Assets Current assets Cash and deposits 57,038 49,538 Accounts receivable - trade 761 770 Merchandise 92,031 88,878 Supplies 292 287 Other 15,497 19,744 Total current assets 165,622 159,219 Non-current assets Property, plant and equipment Buildings and structures, net 250,949 251,916 Land 53,238 56,141 Other, net 26,937 28,783 Total property, plant and equipment 331,125 336,842 Intangible assets 446 670 Investments and other assets Leasehold and guarantee deposits 17,038 17,141 Construction assistance fund receivables 4,460 4,397 Other 6,062 6,034 Total investments and other assets 27,561 27,573 Total non-current assets 359,133 365,086 Total assets 524,755 524,305 Liabilities Current liabilities Accounts payable - trade 177,125 178,973 Current portion of long-term borrowings 5,682 5,482 Income taxes payable 8,060 4,397 Provision for loss on store closings 52 32 Other 29,759 27,150 Total current liabilities 220,680 216,036 Non-current liabilities Long-term borrowings 37,202 36,064 Retirement benefit liability 1,953 2,021 Asset retirement obligations 2,206 2,232 Other 5,249 5,292 Total non-current liabilities 46,612 45,611 Total liabilities 267,292 261,647
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4 (Million yen) As of May 31, 2025 As of August 31, 2025 Net assets Shareholders’ equity Share capital 4,178 4,178 Capital surplus 5,101 5,101 Retained earnings 248,309 253,508 Treasury shares (227) (227) Total shareholders’ equity 257,362 262,561 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1 1 Remeasurements of defined benefit plans 99 95 Total accumulated other comprehensive income 101 97 Total net assets 257,463 262,658 Total liabilities and net assets 524,755 524,305
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5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Three Months Ended August 31, 2024 and Three Months Ended August 31, 2025 (Million yen) For the three months ended August 31, 2024 For the three months ended August 31, 2025 Net sales 261,841 272,394 Cost of sales 207,278 215,219 Gross profit 54,562 57,174 Selling, general and administrative expenses 42,982 45,529 Operating profit 11,580 11,645 Non-operating income Interest income 11 27 Commission income 348 221 Rental income from real estate 294 303 Gain on receipt of donated non-current assets 127 105 Other 139 138 Total non-operating income 920 796 Non-operating expenses Interest expenses 49 110 Rental costs on real estate 113 109 Other 44 33 Total non-operating expenses 207 252 Ordinary profit 12,293 12,188 Extraordinary income Insurance claim income – 3 Total extraordinary income – 3 Extraordinary losses Loss on retirement of non-current assets 154 74 Loss on disaster 49 24 Loss on store closings 2 4 Provision for loss on store closings 20 – Total extraordinary losses 227 103 Profit before income taxes 12,066 12,088 Income taxes 3,922 3,916 Profit 8,143 8,171 Profit attributable to owners of parent 8,143 8,171
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6 Quarterly Consolidated Statements of Comprehensive Income Three Months Ended August 31, 2024 and Three Months Ended August 31, 2025 (Million yen) For the three months ended August 31, 2024 For the three months ended August 31, 2025 Profit 8,143 8,171 Other comprehensive income Valuation difference on available-for-sale securities (0) 0 Remeasurements of defined benefit plans, net of tax (2) (4) Total other comprehensive income (2) (4) Comprehensive income 8,140 8,167 Comprehensive income attributable to Comprehensive income attributable to owners of parent 8,140 8,167
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7 (3) Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements) (Calculation of income taxes) Income taxes for the quarterly consolidated financial statements are calculated by applying a reasonably estimated effective tax rate to quarterly pre-tax income. This effective tax rate is based on the annual pre-tax income after applying tax effect accounting for the consolidated fiscal year. (Notes on segment information, etc.) [Segment information] I. Three months ended August 31, 2024 (from June 1, 2024 to August 31, 2024) This information is omitted since the Group operates in a single segment of retail sale of pharmaceuticals and cosmetics, etc. II. Three months ended August 31, 2025 (from June 1, 2025 to August 31, 2025) This information is omitted since the Group operates in a single segment of retail sale of pharmaceuticals and cosmetics, etc. (Notes on statements of cash flows) No quarterly consolidated statements of cash flows have been prepared for the three months ended August 31, 2025. Depreciation (including amortization of intangible assets) for the three months ended August 31, 2024 and three months ended August 31, 2025 are as shown below. Three months ended August 31, 2024 Three months ended August 31, 2025 Depreciation ¥5,186 million ¥5,748 million
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8 3. Supplementary Information Sales by product Product Three months ended August 31, 2024 Three months ended August 31, 2025 (Reference) Fiscal year ended May 31, 2025 Amount (Million yen) Composition (%) Amount (Million yen) Composition (%) Amount (Million yen) Composition (%) Pharmaceutical 37,948 14.5 37,207 13.6 140,639 13.9 Cosmetics 24,545 9.4 24,290 8.9 93,107 9.2 Sundry goods 38,960 14.9 37,794 13.9 150,996 14.9 General foods 158,495 60.5 171,024 62.8 619,082 61.2 Others 1,891 0.7 2,077 0.8 7,565 0.8 Total 261,841 100.0 272,394 100.0 1,011,390 100.0 Sales by region Region Number of stores as of August 31, 2025 Net sales (Million yen) Year-on-year (%) Kanto 181 (2) 26,040 115.4 Chubu 182 (4) 25,757 112.0 Kansai 229 (2) 37,188 101.3 Chugoku 224 (1) 38,412 103.7 Shikoku 153 (2) 26,116 101.6 Kyushu 651 (0) 118,879 101.7 Total 1,620 (11) 272,394 104.0 (Notes) 1. The above amounts do not include consump tion taxes. 2. Figures in parentheses in the “Number of stores as of August 31, 2025” column represent the net change from the number of stores as of May 31, 2025.