Cawachi Limited Profits Slump but Dividend Raised on 65th Anniversary

Cawachi Limited ( (JP:2664) ) has issued an announcement.

Cawachi Limited reported a slight 1.2% decline in net sales to ¥284.5 billion for the fiscal year ended March 15, 2026, with operating profit down 9.1% and profit attributable to owners of the parent dropping 34.5% to ¥3.2 billion, reflecting margin pressure despite stable total assets and a modest rise in net assets. Earnings per share fell to ¥143.30, but operating cash flow improved and cash and cash equivalents increased to ¥38.1 billion.

Despite weaker profits, the company raised its annual dividend from ¥80 to ¥100 per share, including a ¥20 commemorative payout for its 65th anniversary, pushing the payout ratio to 69.8% and signaling a strong commitment to shareholder returns. For the year ending March 15, 2027, Cawachi forecasts flat sales growth and significantly lower operating and ordinary profits, indicating expectations of continued earnings pressure even as it maintains a planned annual dividend of ¥100 per share, balancing income distribution with cautious operational outlook.

More about Cawachi Limited

Cawachi Limited is a Japanese company listed on the Tokyo Stock Exchange, operating under Japanese GAAP and focused on retailing healthcare-related products through its chain of drugstores. The company targets domestic consumers with a broad range of pharmaceuticals, daily necessities and related services, positioning itself as a nationwide player in Japan’s drugstore and healthcare retail market.

Average Trading Volume: 146,567

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen67.97B

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