Message from Top Management

There has been a gradual improvement in the business conditions in Japan, driven by improvements in the employment environment and income levels as well as an increase in overseas visitors to the country. However, due to continuing price increases, U.S. trade policies, and the situation in the Middle East, the future for business conditions remains uncertain.

The drugstore and pharmacy industry continues to deal with a severe management environment, facing factors such as revisions to the cost of medicines as well as intensifying competition both from within the industry and from other sectors. Yet with stabilized consumer spending and a rise in selective consumption in which customers choose products based on their value, an upward trend is being observed across the entire industry.

Amidst this environment, the SUGI Pharmacy Group increased both sales and profits by striving to improve customer satisfaction and optimize store management through quickly launching new stores and promoting DX. In sustainability management, we gradually expanded the number of stores equipped with solar panels through a third-party ownership model. Also, we received a third-party verification for the calculation of our greenhouse gas emissions volume. This ensured the accuracy and transparency of our environmental data disclosures.

Last fiscal year, we opened 110 stores and obtained 72 dispensing pharmacies. As of the end of February, our total of stores has reached 2,321. Sales increased 15.1% year-on-year to 1.0103 trillion yen, and we achieved the goal of one trillion yen in sales set forth in our medium-term management plan a year ahead of schedule. I’d like to take this opportunity to offer my deepest gratitude to all the SUGI Pharmacy Group employees who took on this challenge as well as our stakeholders for their unwavering support. Without you, this achievement would not have been possible.

This fiscal year marks 50 years since our establishment, as well as the start of a new medium-term management plan. The Group will come together to forcefully promote our evolution into a “total healthcare company” centered on pharmaceuticals, healthcare, and DX. Based on our management philosophy, which has remained unchanged across these 50 years, our mission is to deliver comfortable lives by supporting the health of people throughout the region, and we will strive to remain an indispensable part of the localities we serve.

May 2026