MatsukiyoCocokara & Co. (3088) 1Q FY2026: Good progress on profit contributions from cosmetics and pharmaceuticals, but in line with expectations

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

10 August 2026

MatsukiyoCocokara & Co. (3088)

1Q FY2026: Good progress on profit contributions from

cosmetics and pharmaceuticals, but in line with

expectations

Overweight

3088.T, 3088 JP

Price (10 Aug 26):¥2,557

Price Target (Dec-27):¥3,000

Neutral: 1Q operating profit grew 8.5% to ¥21.5 billion, slightly higher than the

roughly ¥21 billion figure cited in a Nikkei earnings preview August 1, but

unsurprising and in line with our estimate of ¥21.6 billion and the Bloomberg

consensus estimate (both as of July 27). Sales growth and gross margin

improvement were favorable, but costs increased more than expected. We believe

the underlying reasons for these trends and their sustainability from 2Q could be

key factors.

1Q results: Sales grew 5.7% YoY, the gross margin improved 1.27ppt, and

costs rose 10%. We had forecast sales to grow 5.7%, the gross margin to

improve 1.0ppt, and costs to rise 8.9%. Gross margin improvement and cost

growth both exceeded our estimates. The total merchandise gross margin

improved 1.0ppt in 1Q, primarily on (1) mix improvement (the health and

beauty care weighting and the private brand ratio both improved by 0.7ppt to

72.7% and 14.7%, respectively); (2) the impact of drug price agreements in the

dispensing business (increase in 1Q, expected decline in 2Q); and (3) price

optimization benefits and the absence of the FY2025 impacts of rice and daily

delivery products in the general merchandise and food businesses. In addition,

newly consolidated subsidiary AppBrew (retail media business) lifted the

consolidated gross margin by 0.27ppt. Costs beat guidance by ¥900 million,

but management said this was due mainly to variable costs resulting from

higher-than-expected sales (roughly ¥5.3 billion), including costs related to

increased staffing, store fixtures, payment fees, and loyalty points. Profits in

the management support segment and adjustments (unrelated to main

business) fell ¥500 million, but this was due mainly to higher DX costs and was

in line with guidance. The duty-free sales weighting was in the mid-6% range

in 1Q, down slightly YoY.

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