Financial Summary for the First Half of Fiscal Year Ending August 2026: Supplementary Explanation Materials

Performance Overview

In the first half of the fiscal year ending August 2026, net sales reached ¥14,845 million and operating income was ¥3,166 million, both marking record highs. The gross profit margin was 39.7%, and the operating margin was 21.3%, surpassing the prior year period. By product category, Lifestyle Products and Eco Products showed growth, with the e-commerce sales composition ratio exceeding 30%. Selling, general, and administrative expenses increased approximately 9% YoY due to increased personnel and web advertising costs but contributed to improved profitability.

Upward Revision of Full-Year Earnings Guidance and Outlook

The full-year earnings guidance was revised upward to net sales of ¥30,000 million (+1.7% vs. initial), operating income of ¥6,300 million (+3.3% vs. initial), and net income of ¥4,288 million (+4.1% vs. initial). In the second half, efforts will be made to stabilize profit margins through foreign exchange hedging and strengthened raw material procurement. While macroenvironmental risks such as geopolitical tensions and rising raw material costs remain, their impact is currently considered limited. The increase in selling expenses is attributed to higher personnel costs from new graduate and mid-career recruitments and M&A-related expenses, already factored into the revised full-year forecast.