Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 2026

Overview of Performance

For the cumulative third quarter of the fiscal year ending March 2026, net sales amounted to 1,115,175 million yen, down 3.0% year-over-year; however, the third quarter alone (October to December) showed a 1.5% increase compared to the same period last year. Gross profit increased 0.8% year-over-year to 287,605 million yen, and operating income rose 26.3% to 28,599 million yen. Despite recording a special loss of 6.3 billion yen related to cost structure reform expenses, net income attributable to owners of the parent for the quarter surged significantly to 10,371 million yen year-over-year.

Adjusted Performance and Regional Trends

Adjusted net sales decreased 2.7% year-over-year; however, gross profit increased by 2.0%, and the gross profit margin rose by 1.2 points. Selling, general and administrative expenses declined 1.4%, resulting in an adjusted operating income before goodwill amortization of 37,938 million yen, up 21.2% year-over-year. By region, domestic gross profit increased 4.0% year-over-year, with the third quarter showing a particularly strong 8.8% growth. Overseas, amid sluggish top-line growth in Greater China and ASEAN regions, profits increased due to the effects of cost structure reforms.

Full-Year Earnings Guidance for Fiscal Year Ending March 2026

The full-year earnings forecast remains unchanged from the previous announcement. Net sales are expected to reach 1,650,000 million yen (up 2.3% YoY), operating revenue at 970,000 million yen (up 1.8% YoY), operating income at 40,000 million yen (up 6.4% YoY), ordinary income at 43,000 million yen (up 0.8% YoY), and net income attributable to owners of the parent at 20,000 million yen (up 85.7% YoY). Adjusted gross profit is projected at 419,000 million yen (up 5.7% YoY), and adjusted operating income before goodwill amortization at 53,500 million yen (up 7.0% YoY).