Supplementary Explanation Materials for the Financial Summary for the Third Quarter (April-December) of the Fiscal Year Ending March 2026

Overview of Financial Results

For the cumulative third quarter (April-December) of the fiscal year ending March 2026, net sales amounted to ¥58,485 million (8.7% Year-over-Year increase), operating income was ¥14,011 million (3.4% increase YoY), and net income attributable to owners of parent for the quarter reached ¥9,331 million (3.4% YoY increase), achieving record highs for both sales and profit levels. Progress in new store openings and brand development contributed positively, with inbound sales also rising 8.2% Year-over-Year to ¥8,013 million. Although the surge in raw material costs pressured the gross profit margin, performance improvement was realized through execution of business initiatives.

Segment Performance and Future Outlook

By segment, the 'Sucre Group' and 'Kotobuki Confectionery Group' recorded higher sales and profits, maintaining solid performance even when comparing after segment integration due to organizational restructuring. The full-year earnings forecast remains unchanged from the figures announced on May 13, 2025, with projections of net sales of ¥79,670 million (10.1% increase over prior year), operating income of ¥29,950 million (10.1% increase), and net income of ¥19,650 million (11.6% increase). Capital investment and depreciation expenses are progressing as planned, and the company intends to continue advancing its growth strategy.