MatsukiyoCocokara & Co. was founded in 1932 and headquartered in Tokyo, Japan. It is one of the country’s largest integrated drugstore and pharmacy retail groups, formed through the management merger of Matsumotokiyoshi Holdings and Cocokara Fine Inc. The company operates a broad national network of stores, providing pharmaceuticals, health and beauty products, daily necessities, and personal care services to a diverse consumer base. Through its expansive retail, wholesale, and management support segments, MatsukiyoCocokara delivers both proprietary and third-party products, leveraging scale and operational innovation to drive value and customer loyalty. Note that as of June 30, 2025, the company had close to 3,493 local stores (1,946 Matsumotokiyoshi Group and 1,547 Cocokarafine Group) and 82 stores overseas (Taiwan 24, Thailand 30, Vietnam 14, Hong Kong 13, and Guam 1).
MatsukiyoCocokara operates through three reportable segments including Management support business (40.4% of Q1 25 net sales), Matsumotokiyoshi Group business (38.3%), and Cocokarafine Group business (21.3%). In addition, the company records sales by product categories namely: Medical and pharmaceutical products (26.1% Q1 25 net sales), Cosmetics (27.0%), OTC (14.6%), General merchandise (13.7%), Dispensing (11.6%), and Food (7.0%).
Strong domestic performance in Q125
MatsukiyoCocokara Co. released its Q1 25 results on August 13, 2025, posting a 5.3% y/y increase in revenue, reaching JPY273.6bn, driven by 3% y/y growth in Management support business and 8.3% y/y growth in Matsumotokiyoshi Group business, fueled by urban foot traffic recovery and growth in inbound tourism. In addition, the Cosmetics and Food segment grew by 8.7% y/y and 8.6% y/y respectively. These results were propelled by increased demand from overseas tourists and effective app-based promotions, boosting same-store sales and customer loyalty.
Operating profit rose 14.6% y/y to JPY19.9bn, driven by operational efficiency initiatives and higher-margin cosmetics sales. Its margin improved 50bp to 7.2%. Net income rose 10.8% y/y, reaching JPY12.9bn, with Diluted EPS of JPY32.3, reflecting 15.4% y/y growth, driven by stronger operating performance and higher sales. The company opened 24 new dispensing pharmacy stores in Q1 25, with 19 from Matsumotokiyoshi Group and five from Cocokarafine Group businesses.
Looking ahead for FY 25, the company targets revenue growth of 3.6% y/y to JPY1.10 trillion, EBIT growth of 4.2% y/y to JPY85.5bn, and net profit growth of 3.3% y/y to JPY56.5bn, with EPS of JPY141.0. MatsukiyoCocokara estimates dividend of JPY46.0, with a payout ratio expansion of 40bp to 33.3%
Strategic acquisition to increase network
On August 13, 2025, MatsukiyoCocokara & Co. announced the full acquisition of SHINSEIDOYAKKYOKU Co. Ltd., which operates 119 drugstores and dispensing pharmacies in Northern Kyushu (Japan), by its subsidiary And Company Co., Ltd. This move is closely aligned with the company's vision of making health and beauty more enjoyable and widely accessible, further solidifying its presence in the pharmacy and drugstore business domains.
By integrating SHINSEIDOYAKKYOKU’s established local network, MatsukiyoCocokara aims to enhance customer convenience, leverage regional expertise, and generate operational synergies, ultimately supporting stronger revenue growth and reinforcing its leadership position within Japan’s healthcare and retail pharmacy market.
Long-term trajectory
MatsukiyoCocokara has posted a revenue CAGR of 13.3% over FY 21-24, reaching JPY1.1tn, driven by post-COVID same-store recovery and higher basket sizes, rapid network expansion, and stronger cosmetics/private brand sales. EBITDA rose at a CAGR of 23% over the same period, reaching JPY105bn, with margin expanding from 7.7% to 9.9% over the same period. Net income increased with a CAGR of 16.5% to JPY54.7bn, with margin expanding from 4.7% to 5.2%.
Consistent growth in net earnings contributed to a solid rise in FCF, increasing from minus JPY6bn to JPY61.6bn, facilitated by a robust rise in cash inflow from operations, increasing from JPY39.8bn to JPY81.5bn and cash and cash equivalent increasing from JPY74.5bn to JPY112bn. In addition, total debt declined from JPY22.9bn to JPY2.2bn, consequently gearing improved from 4.9% in FY 21 to 0.4% in FY 24.
In comparison, Welcia Holdings Co., Ltd., a local peer, reported a revenue CAGR of 7.8% to reach JPY1.3tn over FY 21-24. EBITDA rose at a CAGR of 0.4% to JPY62.7bn, however margins contracted from 6.0% to 4.9%. Net income declined at minus 17.3% CAGR to JPY15bn.
Robust stock returns
Over the past year, the company's stock has delivered robust returns of approximately 29.8%. In comparison, Welcia Holdings’ stock delivered higher returns of 34.4% over the same period.
MatsukiyoCocokara is currently trading at a P/E of 21.2x, based on the FY 25 estimated EPS of JPY145.7, which is higher than its 3-year historical average of 20.4x but lower than that of Welcia Holdings’ P/E of 24 x. In terms of EV/EBITDA, the company is currently trading at 10x, based on the FY 25 estimated EBITDA of JPY109.4bn, which is slightly higher than its 3-year historical average of 9.7x and Welcia Holdings (9.1x).
MatsukiyoCocokara is monitored by 12 analysts, with eight having ‘Buy’ ratings and four having ‘Hold’ rating, with an average target price of JPY3,358.3, implying 8.6% upside potential at present.
These views are supported by an anticipated revenue CAGR of 3.7% over FY 24-27, reaching JPY1.2tn in FY 27. In addition, analysts expect an EBITDA CAGR of 4.9% to JPY120.9bn, with a margin of 10.2%. Net income is estimated to rise at a CAGR of 6.5% to JPY66bn. Likewise, analysts estimate an EBITDA CAGR of 4.8% and a net profit CAGR of 24.6% for Welcia Holdings over FY 24-27.
Overall, MatsukiyoCocokara has demonstrated consistent operational excellence and resilience, underpinned by its multi-brand strategy, ongoing store network expansion, and disciplined cost management. The company’s ability to integrate regional acquisitions and innovate customer experiences positions it favorably for continued growth and market leadership. Looking ahead, MatsukiyoCocokara is well-placed to deliver sustainable value as it navigates Japan’s evolving healthcare and retail environment.
However, the company faces risks from intensifying industry competition and fluctuating consumer demand, which may impact profitability. Potential regulatory changes in pharmaceutical retail and pressures from labor shortages could also present operational challenges.
