Supplementary Material for the Fiscal Year Ending December 2025 Financial Results

Performance Overview

For the fiscal year ending December 2025, consolidated performance recorded net sales of JPY 34,771 million (9.4% Year-over-Year increase), operating income of JPY 4,691 million (9.5% Year-over-Year increase), and net income attributable to owners of parent of JPY 3,378 million (3.6% Year-over-Year increase). The gross profit margin improved from 41.5% in the previous year to 42.3%, and the operating margin was maintained at 13.5%, the same level as the prior year. By segment, core candy sales grew steadily by 8.1%, and gummy sales rose by 10.8%. Although selling, general and administrative expenses increased, profits were secured through sales growth. Earnings guidance for the fiscal year ending December 2026 anticipates net sales of JPY 36,500 million, operating income of JPY 4,900 million, and net income of JPY 3,450 million, projecting increases in both revenue and profit.

Market Trends and Future Outlook

Overall market trends show an increase in retail sales value of candy (hard candy) and gummies, with candy growing 4.6% and gummies 6.9% Year-over-Year for the fiscal year ending December 2025. Correspondingly, Kanro’s core products experienced sales growth. Investment in capital expenditures and research and development expenses also increased to strengthen the foundation for future growth. The dividend is planned at JPY 32 per share, maintaining a stable shareholder return policy with a payout ratio around 40%.