Welcia Holdings posts strong H1 results, prepares for merger

Welcia Holdings reported a 7.6% year-on-year increase in net sales to JPY 678,793 million for the first half of fiscal year 2026, with operating income up 20.8% to JPY 22,809 million. Net income attributable to owners of parent saw a substantial 35.9% increase to JPY 15,923 million. This growth was attributed to M&A activities, existing store sales, improved gross profit margins, and effective SG&A expense control, despite system investments for productivity. Dispensing sales surged by 11.2% year-on-year to JPY 152,104 million, reflecting increased prescription volumes and enhanced technical fees.

The company is preparing for a merger with Tsuruha Holdings and is scheduled for delisting on November 27, 2025. This integration follows a series of recent acquisitions, including Xchange Inc. (March 2024), Towoshiya Pharmacy Co., Ltd. (June 2024), Welpark Co., Ltd. (September 2024), and Welcia Partners Co., Inc. (October 2024), contributing to its expanded operational scale.

Operational initiatives like an AI-based electronic medication record system and digital tools at stores have enhanced productivity and communication. Welcia's private brand sales also grew by 18.4% year-on-year, with the sales composition ratio expanding to 10.1%. Looking ahead, the company aims to strengthen existing stores, improve group company profitability, and expand its private brand offerings.