Message from Top Management

While the economy is on a moderate recovery trend mainly due to improvements in the employment and income environment, the future economic outlook is uncertain due to various factors, such as continued price increases and the economic impact of reciprocal tariffs. We foresee that the drugstore and prescription dispensing pharmacy industry will experience further progress toward an oligopoly, a clearer differentiation between healthcare-focused, beauty-item-focused, and food-focused stores, and an intensification of the competition in the quality of the communication with customers in the field of prescription dispensing..

In this harsh business environment, I&H (Hanshin Dispensing Group), which specializes in prescription dispensing, joined the SUGI Pharmacy Group in September last year, followed by the merger between I&H and SUGI Pharmacy in March. Under a structure that strengthens our unity in business promotion, we aim to develop into a healthcare company trusted by local citizens and achieve further growth.

Last fiscal year, we set up 130 stores, 10 more than planned, bringing the total number of stores to 2,185 as of the end of February. In addition, we commenced in-house development of the SUGI Pharmacy app, which serves as the central point of our contact with customers, and this has led to the app’s continuous evolution. Boasting 13.8 million downloads, the app has been increasing convenience and value for customers. Moreover, our store renovations and inbound customer services also drove business performance, with sales increasing 17.9% year-on-year to 878 billion yen, the highest figure ever.

We have set our sales target for FY2026 as 1 trillion yen in the Mid-Term Management Plan, but thanks to the strong performance, it is expected that we will achieve the target one year ahead of schedule. As the “Main Framework Underpinning Local Healthcare,” the SUGI Pharmacy Group will continue to proceed with the Total Healthcare Strategy, centered on prescription dispensing, healthcare, and digital transformation, with prescription dispensing drugstores as its base.

In the SUGI Pharmacy Group, we aim to support everyone's healthy, rich lifestyle by placing a focus on each individual and practicing the Management Philosophy, and we will strive for great progress toward the 50th anniversary, to be celebrated next year.