Notice of Revision to Full-Year Earnings Guidance for the Fiscal Year Ending December 2026

Overview of Earnings

Hikari Business Form Co., Ltd. has revised its full-year earnings guidance for the fiscal year ending December 2026. Net sales have been significantly reduced from the previous guidance, and operating income, ordinary income, net income attributable to owners of parent, and earnings per share have each been substantially revised downward. The primary causes cited are rising costs for materials such as paper and logistics, refurbishment costs for the TAKA O Solution Center, depreciation of equipment and machinery, and increased security-related expenses. The dividend forecast remains at the previously announced year-end dividend of 25 yen per share.

Impact and Outlook

Although the company continues to pass on appropriate price increases to customers, the timing of contract condition changes with major clients has been delayed and there have been losses of major orders, resulting in expectations that profit margins and sales recovery will fall short of initial plans. Going forward, it will be important to continue acquiring new customers and implementing price pass-through while improving the cost structure.