Kusuri No Aoki Holdings, a Japanese drugstore operator, experienced a significant surge in shares on Wednesday morning following a notable increase in first-quarter profit, primarily driven by improved sales of food items.
The shares saw an impressive rise of 7.1% and were trading at 9,165 yen, reaching a peak of 10% earlier in the day.
In a recent announcement after the market closed on Tuesday, Kusuri No Aoki reported a 16% rise in net profit to Y4.79 billion ($32.1 million) for the quarter ending Aug. 20, compared to the same period the previous year.
First-quarter revenue also witnessed a remarkable growth of 17%, reaching Y107.44 billion. Notably, sales of food, drinks, and snacks surged by 28%, with figures amounting to Y50.54 billion. This surge can be attributed to the company’s enhancements in offering an expanded range of fresh food items.
During the three-month period, Kusuri No Aoki successfully added six stores on a net basis, resulting in a total store count of 909 at the end of the quarter.
Kusuri No Aoki acknowledged the increasingly challenging business landscape due to factors such as inflation, competition for new store openings, and industry leaders engaging in mergers and acquisitions.
Despite these challenges, Kusuri No Aoki has maintained its earnings forecasts for the fiscal year ending May 20, 2024. It anticipates an 8.2% growth in revenue to Y410.00 billion, along with a 5.5% increase in net profit to Y13.00 billion.
